To Guarantor or Not To Guarantor

The question of whether to have a guarantor on an equipment lease or not is often the question for startup businesses. If you're asking yourself, should I have a guarantor on my copier lease, then read on...

Anything you can do to bolster your lease application, you should strongly consider. If you have a low credit score or are a new business, a guarantor can get your copier lease application approved. In addition, you may be able to secure a better interest rate on your equipment lease. Better lease terms mean the potential for more profit and flexibility that you might not have had if you hadn't considered a guarantor.

If you're in the position where someone from your board of directors or a private investor is willing to be a guarantor, you should always consider the option. Often, it is worth talking to an equipment lessor and explaining that a guarantor is a possibility because it may make them more comfortable with working with a startup business on an equipment lease. There's also no stigma attached to businesses that have guarantors, in fact, many leasing companies prefer it.

If you need more information on guarantors or equipment lease, please consider contacting the Graphic Savings Group.

Lease Application Approval Tips

These four tips will help you get your lease application approved. Every day you're waiting for an answer is one less day to be making money.

1. Order Up

Show evidence of orders or contracts that you need the equipment to perform. Advance sales are a major bonus.

2. Credit History

The financial institution will need to examine your individual credti history and that of your corporation. Consider having partners or a board of directors if you're credit history is not as strong as you would like or if your corporation is just starting out.

3. Collateral

Pledging additional collateral, such as property or holdings, will make your bottom line more attractive to lessors.

4. Consolidate

Work with an equipment value-added reseller to bundle equipment and peripheral purchases into a single lease.

If you are considering applying for a lease; please consider Graphic Savings Group.