How To Get Approved For Equipment Leasing in Canada?

Want to add new equipment to your business inventory? Purchasing equipment can turn out to be costly, and may not always be needed, especially if the need is for a short term. In this case, leasing equipment turns out to be the best choice that saves you with money while providing you the tools or machinery needed to finish the job. Since, leasing is considered as a form of credit, it requires approval and a straightforward application process.

Leasing equipment in Abbotsford is somewhat similar to financing equipment, with the only difference being that the lender purchases the equipment. Since you are not purchasing the equipment, leasing can be easier to get approved compared to financing. 

Leasing is a type of credit, thus you will be subject to credit and background checks. This is because equipment is typically highly expensive, and the lender wants to ensure that you have the funds to cover the cost if it is lost, stolen, or damaged. 

Here are a few steps you can take to increase your chances of getting approved:

  • Make sure your credit is good

To get approved for equipment leasing, your business must have a good credit score. You may not need a perfect credit, but it should be in a good position. If you don’t have good credit, you should consult a financing company about the ways to improve it. 

  • Hire an accountant to complete the documentation

When you apply for equipment leasing, you must provide financial statements and documents demonstrating your ability to pay for the equipment, in case it gets lost or damaged. Having an accountant prepare the documents on your behalf ensures accuracy and provides credibility to your application.

  • Provide accurate and up-to-date business details 

Another critical yet commonly ignored aspect of your leasing application is your company details, which states your financial status and existing inventory details. When applying for equipment leasing, make sure to provide the most accurate and up-to-date information about your business. This information will be used to validate your company’s assets and finances. 

  • Develop a business plan with future projections

Many business owners believe that newly established businesses find it difficult to get equipment leasing, though this is not true. You can improve your chances of being accepted for equipment leasing by creating a detailed business strategy that includes your future projections and business vision.

So, these were some steps if followed can help you get approved for an equipment leasing in Abbotsford. If you are looking for a reliable leasing and financing company to take you through your equipment financing needs, rely on no other than Sandhu & Sran Leasing & Financing. We are a full-service leasing company specializing in heavy equipment and industrial machinery leasing. For more details, give us a call today.

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