Why Work with a Leasing Broker?
An equipment lease broker works as a mediator between the customer, manufacturers and retailers, and lenders. They work hard to get the best price and the best lending terms for a business owner looking to obtain equipment.
Ultimately, lease brokers work for you – the consumer – to save you time and money. They do this by developing relationships with manufacturers, banks, and other lenders. It is their job to be aware of market trends and to provide valuable support and advice to you.
Some equipment leasing brokers work as individuals while others work within companies buoyed by a support staff. Usually, the equipment manufacturer or the lender pays the brokerage fees which means that there is little to no out-of-pocket expenses for using a lease broker.
Thus, you can get a great rate with very little risk and time commitment.
What are the Advantages to Hiring a Lease Broker?
- You can save both time and money. Because of the broker’s contacts and knowledge of the industry, the broker can often put together better deals for you than you might otherwise have found on your own.
- Often, lease brokers are a great resource for advice and support. Their advice is usually impartial since they effectively work with numerous manufacturers and lenders.
- Broker fees are usually paid by the manufacturer, lender, or both so you keep more of your cash.
- They are your one point of contact. Since they’ve developed a network of lenders, you don’t need to worry about the arduous task of speaking with bank representatives to find the best deals. They’ve already done that and understand what lenders are looking for in order to approve funding.
- They are interested in developing long term relationships with you. They want to continue assisting you with your leasing needs as your business continues to grow. That means, not only do they have a vested interest in the success of your business, it also means that if you need assistance a few months after the lease is signed, you’ll receive the same great customer service you received before the sale was made.
How Are Lease Brokers Different from Bank Underwriters?
|Lease Broker||Lease Underwriter|
|Definition||They are mediators. They go between the customer, equipment manufacturers and retailers, and the lender. Their goal is to negotiate the best price and the best lending terms for the business owner.||Essentially, they’re investigators. They review your credit history in an effort to ascertain the cost associated with the risk of lending to you. Based upon this information, they will then decide whether to offer you a loan.|
|Who They Work for||Leasing brokers work for you by building connections with many lenders and manufacturers. Thus, they look to find you the best deal among many lenders.||Underwriters work for only one financial institution. As a result, they approve or deny lease applications for one lender.|
|What They Do||Lease brokers develop relationships with people. Not only do they work to get the best deals and lending terms, they make it their business to stay up-to-date on market trends so they can provide expert support and advice. They tend to work more with people.||Underwriters specialize in credit analysis. They try to determine their client’s credit, the viability of any collateral assets that will be used to support the loan, and the ability and timeliness that they will be able to repay that debt. They tend to work more with numbers.|
|Method||Brokering is about negotiating and shopping around for the right coverage for you. They force multiple lenders to compete for your business.||Underwriters tend to be more analytical and based on your credit and business finances. They want to see if you are suitable for the lease terms being offered.|
With Thomcat Leasing, they’ve already done the hard work of researching lenders. They have great relationships and know where to get you the best terms for your lease. They can negotiate terms that are flexible and tailored to fit your business needs. Even if you need to skip a payment on certain months because your business is seasonal, they know how to have that built into your contract.
They’re interested in the long term. After the lease is signed, they won’t just disappear. If you need to upgrade your equipment or you need advice or support, they’re here to help.
Click here to get a 60 second lease estimate and see just how affordable your rates can be.
Equipment Leasing Guide
Want to know more about leasing? Check out our small business leasing guide for leasing tips!