Finding the right finance company can be time consuming. But it’s time well spent when you consider that the wrong choice can leave you locked into a long-term agreement that blunts your competitive edge and hamstrings your business agility for the length of the agreement and beyond.
What should you watch for? Here are three key things to be aware of when selecting a financing partner that will help you grow your business, rather than hold it back.
Three Things to Check for When Selecting a Financing Partner
- Financing Terms: Some financing agreements are only a little shorter and less complex than War and Peace and it’s easy to miss key terms buried in a lot of legalese. The result? You thought you’d own the equipment, but you don’t. Or you thought you signed up for 63 equal payments, but find out too late that you’re liable for a large balloon payment at the end of the term. A great way to avoid these types of surprises is to have easy to read documents and your Account Champion ready to explain them clearly and concisely
- Middlemen: Is your financing company the direct source for equipment funding? Or are you dealing with a third party that stands between you and the financing company? Third parties come at a price, whether it’s expressly stated in the financing agreement or quietly passed on to you in the form of higher rates. Even if you’re certain you’re dealing directly with a
- References: Financing, done right, isn’t a one off transaction – it’s a relationship you can count on whenever you need new equipment or upgrades to existing equipment. Get references before you get into that relationship. Any reputable company will gladly provide them and taking time to follow up can pay for itself many times over
Want more on choosing a financing company? Get in touch with a LEAF Account Champion for expert advice on selecting a financing partner that understands your goals and will work with you to achieve them in the years to come.