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  • Writer's pictureRaptor Financial Group

Comparing Equipment Financing Companies

Updated: Jul 19, 2022

Given the costs and factors discussed thus far, comparing multiple lease providers is critical to ensuring you get the best deal. You should familiarize yourself with the three types of equipment finance providers and the advantages each offers before starting your search:

Leasing agent

A lease broker is a middleman who connects you with potential lessors. The broker will present you with the offers and submit your financing requests on your behalf, taking care of the majority of the paperwork.

Brokers account for a small portion of the leasing market, and their services are not inexpensive. To negotiate a deal, brokers are said to charge 2% to 4% of the equipment cost.

The advantage of using brokers is their extensive network of contacts. They specialize in obtaining a wider range of equipment, sometimes at better prices than would be available through traditional channels. They are often industry-specific.

Leasing agency

A leasing company is frequently a manufacturer or dealer's subsidiary leasing arm. A leasing company, also known as a captive lessor, exists solely to facilitate leases between its parent company and its dealer network. As a result, when dealing directly with a manufacturer, you'll almost always deal with a leasing company.

Independent lessor

All third-party lease providers are considered independent lessors. Banks, lease specialists, and diversified financial companies are examples of independent lessors who provide equipment leases directly to your business. They are distinct from leasing companies in that they typically specialize in equipment remarketing, allowing them to group products from multiple manufacturers and offer more competitive APRs.



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