The term “leasing broker” might have once been tinged with skepticism due to past experiences where the final deal didn’t quite match the initial promises. Clients have often been stung by discrepancies revealed only when their accountant dissected the deal at year-end. So, how can you safeguard against such surprises? Transparency is your best defence. Always request an amortization schedule before signing anything. This ensures the terms you’ve been quoted align with the documents you’re committing to. If a broker can’t provide this basic document, consider it a major red flag and look elsewhere.

Leasing’s reputation has undergone significant rehabilitation. It’s no longer seen as a desperate last resort but as a strategic financial tool that, when structured properly, offers considerable tax benefits and lower upfront costs. This means not only less strain on your cash flow but also smoother procurement of the necessary equipment for your operations. To fully benefit, however, it’s crucial to consult with your accountant to align your leasing structure with your tax strategy.

The ideal lease agreement should mimic a loan – gradually reducing over time with a nominal buyout at the end, unless your situation calls for a larger residual based on specific project needs or goals. Here, the expertise of a knowledgeable leasing broker is invaluable.

Not all leasing brokers are created equal. While many operate with high levels of integrity and transparency, others might not have your best interests at heart. They should offer access to a broad array of lenders, which not only saves you time but also provides alternatives if an initial application is declined. This is crucial because it prevents you from having to start your financing journey again with each rejection.

Additionally, experienced brokers understand the landscape of asset financing across various industries. They know which lenders are likely to approve your deal and which ones to avoid, especially for complicated transactions like private sales. At Equipment Capital Corp, we carefully select our lending partners to avoid those who are notoriously slow and cumbersome, ensuring you experience the quickest possible turnaround from application to approval.

A good leasing broker does more than just arrange financing. They make sure it fits your specific business needs and supports your growth. By choosing a reputable broker, you get more than financial help—you gain a partner committed to your business’s success.

Check out this video we created on: Why Use a Finance Broker?. This video breaks down the advantages and key points to consider when selecting a finance broker.