Equipment Lease Pre-Approval

Equipment Financing Tip #1

Get Pre-Approved. Line up your financing before you begin negotiating with your vendor. You will find that this benefits you a few different ways.

• Negotiate as if you are paying cash
• Know how much you can afford to purchase from a lenders standpoint
• Leverage your pre-approval for better offers.

Negotiate As If You are Paying Cash

One of the best ways to get a good deal on the price of your equipment is to let the vendor know that you will be paying cash. Most vendors prefer to work with a buyer that can put money in their pocket immediately. Waiting for a customer to line up their financing after they have already placed their order can be frustrating for the equipment vendor and they could end up selling the equipment to someone else for cheaper who is willing to pay cash. Why not make that person be you? Once your pre-approval is in place you know you can act quickly on an equipment purchase. Let the vendor know this and they may be willing to offer your a lower price.

Knowing How Much You Can Afford

By getting a pre-approval from a lender for your equipment lease or loan, you will know what your realistic budget is. This will save you time by not shopping for equipment that you cannot afford. It could also end up saving your cash flow in the long run by keeping you from paying for a piece of equipment that was out of your budget.

Leverage Your Pre-Approval for Better Offers

The pre-approval is just the beginning. Once you know what one lender is willing to lend you, you can only improve your offer from there. See what other lenders are offering and if it is no better than the pre-approval that you already received then you know that you got the best offer you can find.