Tips for Choosing the Right Leasing Partner

Nancy Pistorio

Nancy Pistorio, CLP

Executive Vice President

Allan Levine

Allan Levine

Chief Operating Officer

Madison Capital believes the relationship with our clients is one of our most valuable assets. It is one of the reasons for our success and growth for the past 35 years. Unfortunately, some finance firms view their customers as a one time transaction. They will offer a low lease rate or finance rate and then try to charge you with miscellaneous fees and aggressive terms to compensate for the low rate.

Some examples of these fees and terms include:

  • $500 simple documentation fee
  • Automatic renewal clause
  • Late fees up to 10% for payments received only 1 or 2 days late
  • No grace period for late payments
  • Inflated End of Term Market Valuations or Residuals

Thoroughly read your lease contract in order to be aware of all fees and terms up front. Another important criteria for choosing the right leasing partner is their flexibility. Does the firm financing for a wide range of items such as art work, furniture, software, fitness equipment, etc? This flexibility can allow you to easily add and finance additional items with your leasing partner. If you are a new company, will your firm accept non-traditional collateral such as the cash value in a life insurance policy or the pledge of a stock portfolio to enhance your credit worthiness?

If you are leasing a vehicle for your business be sure you are working with a leasing partner who will provide an appropriate structure for your needs. Perhaps you drive more than the typically allowed 12,000 or 15,000 miles a year and want a lease to match the amount of miles you drive. Madison can tailor a lease that matches your company’s driving habits.

Perhaps your business is seasonal and you want lease payments to match your cash flow. No problem. We can structure a lease with lower payments for when your business is slower, and larger payments when business is in high gear.

Experienced equipment vendors and lessees know they should consider more than just a leasing company’s rates when selecting a lease/finance partner. Remember, unrealistically low lease rates do not always include high level service, satisfaction, and transparency.