Commercial Leasing

Your business has been quite successful. You are doing well but continue to look for additional sources of revenue. What could you possibly do to bring in revenue quickly? One source for doing this is called commercial leasing. More and more businesses are taking advantage of this option to help the bottom line. Commercial leasing is basically the leasing or renting of a business entity's equipment or real estate. By leasing the property the business retains ownership but provides another business the opportunity to utilize equipment or real estate that is not needed currently. There are several benefits associated with leasing commercially.

1) Fixed payments: As the company leasing the property you can count on a guaranteed amount of money coming in each month. The leaser you can count on a set amount going out each month as well. This helps tremendously when compared to other loans that are determined based upon floating interest rates.

2) Terms and Payments: With leasing you can negotiate longer terms than that of traditional loans. This benefits the leaser because payments are lower with extended terms. The company leasing also benefits because the length of the contract provides stability for longer periods of time as well. Through these leasing contracts, if abided by properly – the leasing company can build and improve its business credit.

3) Obsolescense: By leasing equipment you are able as the leaser to guarantee that you are not stuck with any obsolete equipment. At the end of your contract terms you are able to reevaluate to see if you need to upgrade or continue using the current property. Here are a few suggestions to help you lease commercial equipment or real estate a little easier.

1) Choose the right leasing company. Make sure you select a reputable company that will address the needs your business has.

2) Choose the right lease (terms and payments). Choose the best length contract. Be careful to not overly mortgage your company with extreme contract lengths.

3) Check fees. Make sure you know what all the fees and charges are going to be for early termination or service calls, etc.

4) Return or buy provision. If you think you might be interested in purchasing the equipment, make sure to put in a provision for a lease purchase option. If you know you are not going to purchase equipment make sure you have a return policy in your contract as well.

5) Ask for a discount. It never hurts to ask for a discount, especially if you have been a good client for some time.