LeaseAssistant.org a new resource for business

Office World News, May 2001 by Fleming, Michael J

Why should I lease equipment? What are the types of leases and how do they work? What types of companies lease? What are my financing options when I lease?

If you've ever had questions about equipment leasing or financing, here's where you can find the answers you need! The Equipment Leasing Association (ELA) has developed a website, LeaseAssistant.org, to provide potential lessees information about equipment leasing and financing to help them make informed equipment financing decisions.

LeaseAssistant.org, named "Site of the Week" by Information Week in March 2001, was designed to be the one-stop informational portal for financial decision-makers. Rich with information on leasing and strategic financing methods, LeaseAssistant.org offers objective answers to the questions businesspeople have about leasing equipment and demonstrates how this strategic financing option is a strategic means of leveraging capital and controlling costs.

WHY WAS LEASEASSISTANT.ORG CREATED?

As a nonprofit organization representing over 850 leasing companies, ELA created LeaseAssistant.org to present unbiased third-party information to educate businesspeople about how equipment leasing and financing works. Although many businesspeople understand leasing and its benefits, there has never been a one-stop resource dedicated to answering questions about equipment leasing, until now.

WHO SHOULD USE LEASEASSISTANT.ORG?

LeaseAssistant.org is a resource for anyone interested in learning more about leasing. LeaseAssistant.org was originally developed for financial decision-makers, the treasurers and comptrollers of companies who buy or lease equipment.

WHAT INFORMATION IS FEATURED ON LEASEASSISTANT.ORG?

ELA's LeaseAssistant.org is a veritable online encyclopedia for equipment financing and leasing. This easy to use, easy to navigate website provides visitors with information including leasing basics, case studies, market research, leasing news, a detailed list of what can be leased, a checklist of questions to ask when negotiating a lease, the differences between a lease and loan, how to select a financing partner, how to leverage leasing for business success, and a handy glossary of key leasing terms.

LeaseAssistant.org also provides important points for companies to consider before, during, and after the leasing process. These tips get companies thinking about the entire leasing process from the initial acquisition of equipment to how the lease will affect the company and what happens at the end of the lease. This information is invaluable to lessees as they work through the leasing process.

Equipment leasing isn't right for every business and LeaseAssistant.org is designed to help businesses decide if leasing is right for them. If a business does decide to lease, LeaseAssistant.org can help the potential lessee through the leasing process from what questions to ask leasing companies to how to choose a financial partner. Below are the answers to some of the questions most frequently asked by businesses interested in leasing.

HOW DOES A LEASE WORK?

As businesses prepare to compete and grow in a new millennium, many are searching for proven ways to address their equipment financing challenges. The old ways won't meet today's and tomorrow's needs. A solution for many businesses is equipment leasing.

ELA research shows that eight out of ten U.S. companies lease some or all of their equipment. Of all the ways to acquire equipment, leasing is the method most frequently used for all equipment types. In fact, almost any type of equipment can be leased-from fax machines and printing presses, to trucks and bulldozers.

Choosing to lease is a smart way to acquire equipment. There are three ways to acquire equipment-each business can select the way that best fits their company's needs.

Businesses can select and order equipment and then seek financing through a lessor;

Businesses can select equipment by working with a vendor or a manufacturer that offers leasing through its own subsidiary; or

Businesses can obtain equipment directly through a lessor.

By signing the lease, the lessee assigns his or her purchase rights to the lessor, who already owns or who then buys the equipment as specified by the lessee. When the equipment is delivered, the lessee formally accepts it and makes sure it meets all specifications. The lessor pays for the equipment, and the lease takes effect.

I'VE DECIDED TO LEASE; WHERE DO I START?

ELA, through LeaseAssistant.org, recommends businesses ask the following ten questions during the leasing process. These questions take into account all stages of a lease: before, during, and after.

Before

1. How do I plan to use this equipment?

2. Does the leasing representative understand my business and how this transaction helps me to do business?

During

3. What is the total lease payment and are there any other costs that I could incur before the lease ends?

4. What happens if I want to change this lease or end the lease early?

5. How am I responsible if the equipment is damaged or destroyed?