Most often, when leasing a business copy machine, you are going to be presented with a fixed monthly payment that stays the same from the beginning to the end of lease term. There are cases however where a specialty copier lease may be better suited for certain businesses. Some examples of this would be a business with a “Seasonal” cash flow, a company with limited cashflow with realistic cause to expect a cash flow increase in future years or perhaps a start up business that hasn’t yet established the credit rating of a more established business.
In all three of these cases, a less seasoned copier lease representative may give you a sideways look and have no idea how to address each of these businesses specific concerns. There are ways however that an experienced copier lease professional can bring tailored solutions to meet each of these specific situations. Let’s examine each of these specialty copier lease programs below;
Seasonal Business Lease – In the event you have a seasonal business that has strong cash flow during portions of each year followed by lesser cash flow in the other parts of the year, a Seasonal Copier Business Lease might be the best fit for you. Let’s use a landscape company as an example and assume that they have 3 times the cash flow during the 6 month period from April through September as compared to the 6 month period during October through March; In this scenario, rather than having a flat monthly lease payment of $200.00 a year, this company could use a season business lease with a payment of $100.00 a month during their 6 month slow season and a $300.00 a month payment during their 6 month high season to better match the fluctuation in their seasonal cashflow. The sum of payments would be the same over the year but by choosing the Seasonal Business Lease the company could better match their seasonal cash flow taking financial pressure off during the slow season.
Growing Business Lease – In the event that a company has limited cash flow during but expects to have a significant influx in that cash flow in the coming years, a Growing Business Copier Lease might be the best fit for their situation. Let’s assume a 3 year old company is just hitting stride and beginning to really grow their business, but that growth is taking up much of their on hand capital and that they expect in the next couple of years they are going to reach increased profitability. This company might benefit from a Growing Business Lease that could work as shown in the following example. Rather than having a 5 year lease with a $200.00 a month payment for the entire five years, they could instead choose to have a $100.00 a month payment for the first 30 months followed by a $300.00 a month payment for the last 30 months. The overall sum of payments would be the same but with the Growing Business Lease this company could preserve their critical cash flow during the first 30 months and make up the difference in the last 30 months when they expect to reach greater profitability.
Start Up Business Lease – Start up businesses often have a tough time acquiring financing and building up credit during the early years. When looking at trying to lease a business copier, most lease finance companies are looking for a minimum of a 2 and a half year tenure in business unless the company is in the professional realm of Doctor or Attorney. There are however options for a Start Up Business Lease. In most cases a company can increase their likelihood of qualifying for a Start Up Business Lease by having one of the owners of the business agree to sign a Personal Guaranty. A start up business will further enhance their chances of qualifying for this lease by offering to set up an ACH for automatic cash payment where the monthly copier lease payment is automatically paid from a qualifying bank account. Lastly, chances of approval can be increased even more by pro-actively providing a list of creditors to whom your making payments but that may not be reflected in credit reporting. Any or all three of these strategies will significantly improve a start up company of earning approval for their copier lease.
Always remember, that the approval process is never black and white. In most cases, the lease company and the copier vendor are on your side. They want to help you get approved for a specialty copier lease. After all, that is how they earn their living. Sometimes it’s in your best interest to show that your willing to help your own cause. So long as you plan to fulfill your payment obligations, why not sign a personal guaranty, offer to sign up for automatic ACH payments and offer means to proving you have a good payment track record by providing vendors to whom you’re already making payments. Once again, this is why it’s important to choose a business copier provider with the experience and desire to learn how they can best help your business reach your goals and not just sell you a machine.