What is an Equipment Leasing Broker?

When you need machines for your business in the short term but have limited capital, an equipment leasing broker can provide the help necessary for you to succeed. Often referred to as the middleman, a broker mediates between you (the customer), the equipment manufacturer, and the lender, so that you get the best deal possible.

Let’s talk about what an equipment leasing broker does and the advantages of working with one to support your business’ growth.

What Does an Equipment Leasing Broker Do?

Equipment leasing brokers exist to support businesses in their equipment leasing plans, whether to expand capacity or to introduce new products and services. Some brokers operate solo, while others work as a company supported by industry professionals.

Equipment leasing brokers are different from direct lenders or bank underwriters in various ways. For one, lease brokers are mediators and work toward achieving the best lease rates for you, whereas underwriters are investigators who will evaluate your qualifications for a loan. Brokers represent you and talk to different lenders and equipment manufacturers in their network, while underwriters represent just one lender.

Note that an equipment lease is different from an equipment loan. With a lease, the lender purchases the equipment and then rents it out to you for a predetermined period (usually three to 10 years). With a loan, the lender gives you the money so you can own the machines you need, using your equipment as collateral. It is the broker’s responsibility to look for the best leasing deals for you and then earn from a successful contract through commissions paid by the lending agency.

Benefits of Working with an Equipment Leasing Broker

When you need equipment for a limited period only, working with an equipment leasing broker could be to your advantage. Here are some of the benefits.

1. A lease broker works for you, not for the lender.

Brokers establish connections with many equipment manufacturers and lenders to find the best deal for you. They will negotiate on your behalf and find the best terms.

2. A lease broker can find the most favorable terms for your equipment.

Because a broker will already have a network of lenders and equipment makers in their network, it will be easier and faster to find the most affordable and reasonable rates.

3. A lease broker is a people person.

Unlike bank underwriters who conduct credit investigations and asset viability, lease brokers take a more personal approach to understand your needs and limitations. They also keep themselves updated with industry trends so they can provide expert advice on your equipment requirements.

4. With a lease broker, lenders compete for you.

There’s no need to prepare yourself to face a new lender each time. A broker will represent you and negotiate on your behalf. In essence, they will have different providers competing to do business with you.

5. Quicker process with less paperwork.

Because the broker banks on their reputation and professional networks to get a good deal for you, the lease approval process becomes quicker and more seamless. Approvals can even happen within 24 hours. You only need to submit one set of documentation, and the broker will take care of the rest.

Get the Best Deal for Your Business with a Trusted Equipment Leasing Broker

When you’re ready to grow your business and are looking for additional equipment to support it, the equipment leasing specialists at Charter Capital can help. We take pride in our personal and dedicated approach to help you meet your goals. Whether you’re looking for tabletop machines for your small business or something as large as construction equipment, it is our mission to see you succeed. Learn more about our equipment leasing and financing services by contacting us today.