Vendor beware

Office World News, May 2001 by Ellis, Alicia

Consumers are not the only people affected by scams.

Each year, billions of dollars are lost to fraud. Not just to fraud against consumers, but fraud against businesses. Whether it be over the phone, via fax, Internet, or snail mail, these scam artists have devised ingenious ways to bilk you out of your inventory, money, and self-respect. Millions fall prey to seemingly innocent business opportunities, only to find themselves hurt financially and emotionally. "How could I have fallen for that?" and "I just can't believe it" echo the sentiments of those who have been scammed.

Take heed, help is on the way with a look at individual scams, their techniques, and suggestions to help you identify, react, and stop scams in their tracks.

LOAN SCAMS

A loan scam occurs when a business is offered an unsecured business loan by telephone, Internet, or mail. While application fees are common, excessive fees such as processing or first month's fees due before approval, should be a red flag. These scams are aimed at getting your fee quickly and getting out of the loan business or rejecting your application altogether, leaving you with no loan and a lot of questions.

Generally, talking to your own bank for a loan should be your first choice. It's a good bet that if your own bank isn't willing to give you a loan, no other reputable lending institution would be either. If it sounds too good to be true, it probably is and could wind up costing you hundreds to thousands of dollars.

CHARITABLE DONATION SCAMS

Sometimes doing the right thing doesn't pan out the way you hoped and your charitable donation only serve to benefit the scam artist. Don't believe everything you're told by these slicktalking, pretending to care swindlers. All they care about is getting your money in their pockets and they'll use 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.