Starting an Equipment Leasing Company

Summary: Equipment leasing can be a very lucrative business. Your main overhead is the equipment you lease. While you provide business assistance to other businesses through your equipment, you are also making money of it.

This company can be run part time if you wanted to. If these features attract you, then this business guideline will certainly keep you on your toes.

Register a business name for your leasing company and get a license

Visit your city clerk’s office and inquire about the papers needed to be filled out to start your own equipment leasing company. Bring a pen and pad with you so that you can jot down the instructions on how to apply for a business license. Once you received data on how to request for a business license, immediately work on it so you start your business idea at once. Register a business name too for your company so your business could have its own identity that is separate from other competitor’s equipment leasing companies.

Decide what type of equipment you want to lease

Next decide what type of equipment you would like to invest in to operate your leasing company. There are many industries you can tap through this business venture. You can choose to carry manufacturing or maybe medical equipments. Maybe you would want to invest on forklifts, tractors and cranes or maybe medical tools like a magnetic resonance imaging (MRI) and computer tomography imaging (CT scan). You can also lease office equipment and vehicles. You can also venture on agrarian aiding machines. Search the web for more ideas regarding what other equipments other competitor companies are leasing to their clients.

Determine the cost of the equipment

After you have decided which type of equipment to focus your company towards to, it’s now time to determine how you can pay for the cost of these equipments. Search the web for several price offers for your chosen equipments. Find a supplier who can provide you with quality equipment which is lower priced than the others. Once you have found such a supplier, determine how you will finance it. Financing will depend on what type of equipment you will purchase. If for example you want to venture in construction equipment like a forklift, it will certainly be more costly than a copy machine for office equipment. So it’s not enough only to decide which type of equipment to invest in but also to decide your targeted market niche as well as the means to fund it.

Look for location for your business

Find a location that has ample space for your equipment. Look into warehouses that are for sale in your newspaper ads and the internet. The size of your location will depend on the number and sizes of your equipments. Contact a real estate broker and ask for recommendations.

Create a lease contract

Hire a business lawyer who has handled leasing businesses before. Consult him on how you should construct a lease contract for your business. Ask for tips on what you should include in your contract to make it legal.