By The Leasing Group

Four Reasons to Seek Local Financing for Your Business Equipment Lease

When you’re looking into leasing equipment for your business, your first inclination might be to apply for financing with a national bank. That’s an OK route to go if you’re a multi-million dollar firm, but if you’re a small to medium-sized business, a better bet would be to seek out local financing sources.

Here’s why:

  1. Community banks have a vested interest in lending to small businesses in their local area because their focus is on the needs of businesses in their own backyards. Their mission is to channel most of their loans to the neighborhoods where their customers live and work, to fuel local community growth.
  2. Community banks are willing to consider individual circumstances, character and discretionary spending when making loans. They understand issues that might contribute to lower credit scores and are less rigid in their requirements. Local financiers are sometimes less insistent that you have two-plus years of financial statements. Big, national banks are more stringent with their funding parameters and often laser their focus only on credit scoring.
  3. At local banks, financing approvals are made by people who live in your community, have face-to-face relationships with you (their customer) and really understand local needs. As a result, decision-making often happens much faster. Your local bank is also often more willing to up your financing as your business grows and your equipment financing needs increase.
  4.  You can get the same services at a lower cost through a local financing source. Most locally owned financial institutions offer the same array of services as their larger national counterparts. Average fees and interest rates at local banks are often substantially lower than at big banks. Community-based banks often offer better, more reasonable financing terms.

The Leasing Group has strong relationships with a wide selection of local banks and other financial institutions. Let us work with you on securing local financing for your business equipment leasing needs. Contact us at (502) 547-2773.