Formerly a Trucker, Now an Owner-Operator

For those of you not familiar with the trucking industry, there are generally two types of truckers; those who are assigned routes and use company trucks (and are generally paid less because they are using company equipment) and owner-operators who own their own rig and haul the trailers for businesses. A gentleman from outside Atlanta, GA contacted eLease about leasing a used freightliner he found for $22,500. He had obtained his commercial license about five years ago and had been a truck driver for about that long. When looking at his equipment leasing application for this freightliner, we took several things into consideration. First, we looked at his personal credit score which was 620. Then we looked at his driving record and saw that it was very good. Lastly, we took into consideration that although he was “starting a business,” the business he was starting wasn’t something new to him. He has a strong track record of work and the only change was that he was going to be making more money with his own rig. We were able to approve his start-up venture and beginning January 1, 2015 he’ll be working for himself and once the lease is up, he can choose the buyout option on his lease and own the freightliner.

Working While Starting A New Venture

Another start-up we funded recently was an equipment lease for a new restaurant venture. Often restaurants are viewed as high risk to fund any sort of loan for because of their high failure rate and high start-up costs. However, in this case we were able to help this Bronx, NY restaurant with equipment leasing for new freezers. The space that they are renting is mostly complete with the exception of working freezers so the risk to eLease was considerably less than if they needed all new equipment. The new owner came to eLease looking for $11,000 and he had a credit score of 650.  Because we’re a personalized leasing company and not a big bank, we were able to question this owner further and upon learning that he is going to continue working his full time job while the restaurant is established, we were able to approve his equipment lease.

Our hope is that even if you are a start-up that you will consider eLease if you need equipment leasing. We spend time with each client to work to approve their application. We consider each lease separately; there are no one size fits all rules at our company, that’s why we’re able to approve leases for new owner-operators, new restaurateurs and other new ventures. Contact us today even if you’ve been turned down but another leasing company. We’d love to consider your individual circumstance and needs. One of our team members can be reached at 800-499-2577.

Why Isn’t Everyone Crowdfunding?

Although crowdfunding comes with the huge benefit of no debt, there are a lot of hurdles to overcome. Getting information about your idea out to the general public isn’t easy. Many hopeful startups turn to social media but without the right tools and fan base to start, the project can quickly fizzle out. The successful ones have a video professionally made, some media connections and an established social media fan base to solicit. Another reason is that in many cases people get close to their goals but because they’ve promised not to take any money unless they are fully funded, they don’t get to pursue their idea.

Can Crowdfunding and Other Financing Be Combined?

eLease is happy to work with you even if you are using another type of funding source. Many of our customers come to us because they’ve borrowed from their retirement or have had an angel investor put up part of their financial needs and crowdfunding is no different. We are happy to look at your entire financial picture and advise you what we can provide an equipment lease for and then you can utilize your other funds for the rest of your needs. Most often we end up providing equipment leasing for desks, computers, manufacturing equipment and software.

If My Crowdfunding Campaign Fails Can eLease Still Help?

Just because a crowdfunding campaign fails doesn’t mean your idea or product will. In many cases these campaigns don’t truly fail, they fizzle out because they haven’t gotten the buzz they need to attract enough people who are willing or able to invest. We evaluate each lease or capital loan application on its own merits, whether you’ve looked elsewhere for financing previously or not. In addition to equipment leasing, eLease also provides small business working capital loans. Please don’t hesitate to give us a call at 800-499-2577 and speak with one of our team members about your unique situation.

How Does This Affect You?

When the larger companies bring their manufacturing back to the US, they’re doing it because it’s right for their bottom line. They often have shareholders to report to and when they can save money or keep costs even by manufacturing in America, then it becomes not only a financial win but also a public relations win for them which can attract new customers. Same holds true for small business. The cost for you to travel overseas and make contacts and get a factory going and hire someone to monitor the production in China or another foreign country often outweighs leasing equipment needed to manufacture here where you can manage the process locally.

Because the demand for American made goods is at a high not seen in several decades, we know that when you, the inventor/entrepreneur, go to make a “better mousetrap” in the US, you’re going to have a good chance at success for several reasons in addition to those cited by ABC and Consumer Reports. Many boutiques only allow goods that are American made and many national chains have pledged to offer more products made here. In some of those stores, locally made goods are promoted as such.

Why Are We Sharing This?

As the desire for more American made products continues to increase, we are seeing an increase in applications for manufacturing equipment leasing. As a locally based company with no overseas call center, we applaud and want to support businesses in the US who are manufacturing goods here. If you are an inventor looking to fund a new venture or manufacturer and are seeing an increase in the demand for your locally made goods and need to add equipment, we’d love to talk to you. Some of the types of manufacturing equipment that we’ve provided lease financing for include milling machines, conveyor belts, welding equipment, and assembly stations just to name a few. Give any one of our St. Petersburg, Florida based team members a call at 800-499-2577 and they will be happy to answer your questions and get you started on your equipment leasing application.

Share your knowledge of the market

This doesn’t necessarily mean mentor someone who is competing against you but if you have a specialty pet shop and there is a new groomer looking to grow her business, reach out and offer your insight into the pet owner’s behavior in the area. Help grow their business and chances are good they will send their customers to you when they are asked.

Share your marketing insight

You’re now marketing your business successfully. You’re seeing the ROI on the advertising you’ve invested in where you want it to be. You may also have learned where not to spend your marketing dollars. Help guide that entrepreneur in the right direction. Share the knowledge you’ve learned from experience and why those outlets did or didn’t work for you.

Share your vendors

Every business needs suppliers and vendors for everything from equipment leasing to janitorial supplies or services. You’ve established relationships and know the right people for that new small business to contact. Not only will you be helping your mentoree but you’ll also end up with a grateful vendor who may reward you in some way.

Share your support

We all know that part of being in business is failing sometimes. Everyone who has started a business or tried something new in their business fails from time to time and it feels miserable. Sometimes a small business owner just needs to be supported with encouragement or even a similar story of how you learned from an experience like theirs.

Share your time

As a business leader or owner, your time is one of your most valuable assets. Most people who are looking for a mentor understand that what you are doing for them takes away from your business and they will value your time. The mentoree will respect the use of your time and hopefully in the future share their time just like you are sharing yours.

Being a mentor is all about sharing. In the small business community we can support each other by sharing knowledge, experience, vendors and support in so many different ways. Consider reaching out the next time you hear someone in your networking group who is looking for some guidance or offer to volunteer with your local chapter of the SBA. The rewards that come back to you for volunteering and helping someone far exceed your costs.

We’ve listed a few red flags to watch for when you are choosing an equipment leasing company in a past blog. Today we’d like to share some things that we do to help ensure that you have the best experience possible with eLease as we want to build a relationship based on trust with every one of our clients.

We ask questions and then we listen.

We feel it’s important to listen to your response and get a complete understanding of your needs. We also know that you don’t want to repeat yourself or be asked the same thing in a variety of ways. We know your time is valuable so we do all we can to get the right information from you in the most efficient manner possible. Our team members are trained to listen and ask follow up questions when needed.

We only ask what’s needed.                                             

Some leasing companies have long tedious forms that need to be filled out when they know they won’t be using all the information. They have what we refer to as a “one form fits all” mentality, no matter the type of equipment leasing you are looking to obtain. If we need three references we only ask for three, if we need more, we’ll ask for more.

We follow up.

Speaking of reference, if we ask for references, it’s because we need that information to process your lease application. We have to do our due diligence but we won’t ask for information that we’re not going to use. Same philosophy applies to your or banking information and other vendor information.

We respond in a timely manner.

Whether you’ve submitted a new equipment leasing application or just have a question for one of our team members, we work to get you the answer you need in a timely manner. Sometimes we need to do some research and call you back but no matter the issue, we will call you back.

We feel that our team’s training and customer service excellence will help you with your leasing or working capital loan needs. We hope that if you ever have a complaint that you let us know because we really do want you to have the trust in eLease that so many other businesses have found and refer us to other business owners that you know. If there is anything we can do for you, please don’t hesitate to give us a call at 800-499-2577.

You’re approved, now what?

You’ve been approved for the franchise you want in the geographical area you’re interested in working. The next step is usually finding a physical location and outfitting it with what you need to meet the requirements of the franchise. Depending on the type of franchise you have, your needs will differ and the costs will differ. Franchises generally fall into three main categories; quick serve restaurants, business services, and personal services. Nearly every franchise has an equipment leasing service that they work with or recommend there are advantages and disadvantages of working with their financing company.

If this is your first time owning a business and you’ve used a significant portion of your assets to become a franchise owner, using the recommended equipment financing company may be in your best interest. The reasons are because they already know just about all of your financial background, business experience, and they understand the equipment being leased. Because they know the exact hardware and software required, they often don’t need as much filled out by you, the franchisee, because they will contact the supplier and have them complete the serial numbers and other information on your behalf. However, they may charge you a higher rate and they may over sell you on what you need to get started, both of which will cost you more in the long run.

Before you begin working with a third party equipment leasing company, check to make sure it is allowed by your franchise. If you are permitted to go elsewhere, be prepared to do a little more work. You will have to resubmit a significant amount of your financial information and you will need to have the costs, model, and serial numbers of all hardware you’re looking to lease as that will be required. However, with the added work, there is reward. In the long run you may have more flexibility in adding to your existing lease if needed and often you have more competitive rates.

If you’re looking into leasing equipment for your franchise, contact eLease with what you need and we will be happy to evaluate your situation and work with you throughout the process. We work with franchises regularly and would love to see how we can help you. Call us at 800-499-2577.

First, use social media. A recent study by Facebook showed that 36% of respondents indicated their purchase had been at least partially influenced by a post they say on Facebook. By reminding shoppers of your hours, specials and product offerings you will remind them to shop with you. Google Local is a great way to keep people informed of your hours, services and location. Make sure your listing is accurate. Other social media outlets such as Twitter and Pinterest can be helpful as well. Run contests, have spur of the moment specials that you tweet out and be sure to make everyone aware of the winner if you do a contest.

Second bit of advice is to rest. The holidays are a stressful time for any small business and when you’re trying to finish the year strong to meet previously set goals you can often forget to take a day off. Make sure that you get adequate rest and that your staff does as well. No matter the product or service you’re offering your customers will leave your establishment more satisfied when they had pleasant and positive interactions with your team. And a happy customer is a repeat customer so your small business can keep growing.

Lastly you should evaluate this time in a realistic manner. If you’re a retail establishment and you’re seeing record sales day after day, remember this is a time when people are shopping a lot and with consumer confidence higher than it has been in recent years, sales may be great. Keep that in mind as you make plans for the new year for new equipment leasing that you should make sure the growth your seeing this month is sustainable. On the other hand, if you are a service oriented business and you’re seeing a slowdown, this might not be the something that will continue because often this time of year people are not focused on refinancing their home or changing insurance companies and other service type things. Be patient and do the following up that you should be doing year round. Thank past customers for their business, they may just remember to refer you to someone new.

Of course our business is focused on equipment leasing and working capital loans. We often see a slowdown in equipment leasing this time of year and some limited growth in applications for capital loans as some businesses need to up their inventory for this busy time of year. No matter your business or strategy, we wish you all the best as we finish out 2014. Happy Thanksgiving and all the best if Black Friday is a big day for you from all of us at eLease!

So what is a blow-out bar? Just as it sounds, it’s a salon where the only service offered is a blow-out. Seems like a rather small market since you’re not catering to men and only to women with curls or wavy hair who want their hair straightened and styled. The reality is that this is a huge market that has grown from a couple million dollars in 2010 to over $40 million in 2013. The trend started in some major cities like New York and Los Angeles and has quickly moved to other major metropolitan areas like San Diego, Washington D.C. and San Francisco; but don’t let the size of these cities convince you that the concept won’t work in your area. The average cost to a woman wanting a blow-out is just $40 which makes it very affordable to a wide target market and because of the often included extras like a mimosa for morning appointments or wine for evening ones; women see it as a place to socialize and relax, a mini spa visit at a very affordable price.

Salons and blow out bars have most of the same components when it comes to their equipment leasing needs. The equipment for this particular facility included chairs for the stylists, a wash station with two sinks and the chairs that accompanied them. They also included rolling carts for each individual stylist so they could store their equipment even if they weren’t going to be using the station that day and a few administrative equipment needs. All together their equipment leasing total was around $10,000 which in their situation equated to around $350 per month for a 36 month lease and a FMV buyout at the end of the term.

Everyone at eLease works to help each business owner get their equipment leasing approved even when the business isn’t something we’ve financed in the past. We love working with innovated people on innovative businesses and watching them grow or add new locations. We wish this new business owner all the best with their blow-out bar and hope to see many more blow-out bar equipment leases in the coming years as this trend continues to grow. Contact our team today and let us know how we can help with your equipment financing.

If you are in the early stages of starting a small business and looking at your options for start-up funding we encourage you to take advantage of the opportunities offered by SCORE and the Small Business Administration. They have programs that are tailored to former service members with advice on getting started and funding options only available to veterans. Additionally you have access to Vetbiz.gov, part of the US Department of Veterans Affairs, for help in a variety of categories including funding. There are may be other options available to you locally that both SCORE and the SBA can steer you toward.

Today’s veteran owned small businesses employ almost six million people and account for about nine percent of businesses nationwide! Although most started out as just one and two person operations, many have grown. With growth, come different needs than you may have had when you were a new start-up. If you’re one of the just over 2.5 million small businesses at last count from the US Census Bureau you may be experiencing needs for additional or new equipment or operating capital.

We have heard from many of you that once your business is established that you have sometimes experienced a harder time getting funding from the veteran based resources. If you feel you have exhausted the assistance of the veteran specific organizations, keep in mind that eLease helps veterans secure capital loans and equipment leasing regularly. We have found that approvals for veterans happen very smoothly and quickly, perhaps because of your discipline and organization skills learned in service. Whether you are applying for equipment leasing or are looking for a capital loan, we will help you ever step of the way.

Veterans have many more options for equipment leasing and capital loans than the average citizen. We hope that you will allow eLease to help you the next time you have a need. Feel free to contact one of our team members with your questions.

What’s the best way to get the machine I need?

There is no simple answer for that, just like every machine has a slightly different set of features; every business has a different use for the machine. If you’re looking for a few desktop all in one machines that cost a few hundred dollars each then you’re probably best off purchasing. If your small business has grown to the point where you need much more than desktop printing options, your needs may fall into a category where you should consider options other than an outright purchase.  Here are a few pros and cons for each of the leading methods of acquisition.

Lease from the supplier:

Pros – Single point of contact for everything from repairs to payments (and often supplies)

Cons – Often most expensive option, may have no buyout option

Buy from the supplier:

Pros – you own the equipment so you chose your servicer and supplier

Con – large outlay of cash up front

Pay Per Use:

Pros – monthly expense is based on use, all supplies and maintenance come from one source

Cons – variable monthly expense is hard to budget for, you rely on supplier’s pricing for supplies if not included in the per use cost

Third Party Lease:

Pros – often offers the most flexible terms to work within your budget, you chose your service provider and supply provider

Con – payment and services are two different companies

Why should I choose eLease for my printing equipment lease?

Once you’ve determined the need you have for a new printer or all in one machine, be assured that eLease offers flexible terms that meet your needs from 24 to 60 months and different end of lease options including fair market buyout and $1 buyout terms. We can include multiple machines on just one printing equipment lease making your payment simple. Printing equipment leasing can include your maintenance contract payments if that is an option you’d like to add to your acquisition.

As always, we offer you invite you to reach out to our team for any equipment leasing needs you may have. We can offer leasing on many different business and office equipment needs. We’ve funded everything from software to brewery equipment and would love to know how we can help your business. Call us today with your questions or needs – 800-499-2577.