By The Leasing Group

Four differences between vendor leasing and local bank leasing

When you set out to lease equipment for your business, there are a variety of financing options available. One option is to get financing through the company that manufactures or sells the equipment itself. This kind of lease can be attractive because, on the surface, it seems fast and easy. Sometimes it is both. But it is smart to explore local financing, as well.

Here’s why:

1. Understandably, manufacturers and vendors normally only lease what they sell. When you choose lease financing through a local financial institution, you can bundle equipment from multiple vendors into one lease. The Leasing Group can help you negotiate this type of lease contract. Bundling has many advantages; you can read about them here. (LINK)

2. When you lease through a vendor, the interests of the manufacturer are often put ahead of the customer’s. At The Leasing Group, your welfare is our No. 1 priority. For example, in a manufacturer or vendor lease, you may be required to issue payment before your equipment is delivered. When you work with The Leasing Group, we’ll make sure you don’t fork over a penny until you have your equipment in hand.

3. Your vendor’s processing and service centers may not give you the best service. Most likely, their service operations are mass call centers located out of state, so even getting a human being on the phone to assist you can be a challenge. Local financing means local, personalized, more responsive service.

4. Getting out of a lease early or at the end can be a hassle. Receiving your title or final bill of sale can take weeks, even months, because the vendor is in no hurry to give it to you. A lien on the equipment can hold up the process and cause further problems. You might also run into penalties or fees if you try to terminate the lease ahead of schedule. With local financing, you rarely encounter these types of roadblocks.

Some manufacturers and vendors do a good job with their lease processing; but, many don’t and you often don’t realize it until it’s too late. When you partner with The Leasing Group, you can rest assured that we work for you, not the maker or seller of the product you’re leasing. Trust us to provide the best lease contract terms with the lowest rate and with the least hassle.

Call us at (502) 547-2773 to learn more about local financing for your equipment lease.