According to a report, 7 out of every 10-bank loans is rejected generally by the banks due to a number of reasons. Though there are many other options, but it is always best to get your constructional heavy equipment from the renting companies. It is because they don’t need you to have any financial statement. But, before closing your renting contract, how can you tell if you have picked out the right renting company?
Everyone wants to have a good equipment renting deal, and perhaps you are not an exception to this. The most important factors which determine your quality of the deal is listed below:
- High Left-over value:- It is considered to be a very important factor. High left-over value can be easily translated into mean smaller monthly payments. And once you got a clear concept of how this works, you can easily explain the difference between renting two more or less same equipment. Actually, leftover value is the anticipated value of the construction equipment at the end of the renting period. So, if you have found that the equipment has a higher leftover value, then just relax- you have a good renting deal.
- Competitive rate of interest:– It is also a very important factor to decide whether the renting deal is good enough or not. You must be conversant with the equipment leasing terms which the sales people use. It is due to the fact that generally these terms are quite different from the actual market terms. For example, most of the renting companies prefer to use the word “money factors” in place of interest rates. And, if you don’t get the terms right, you may be among those unlucky guys miss out a crucial segment of a sound deal. If you are hesitating to negotiate due to the incorrigible terms used by the renting company, then you can go to your financial advisor to find out if better rates of interest are available in the market.He can also tell you that the renting deal which you have chosen is appreciable enough.
- Lower expense:- You can tell the owner of the company to lower your expense mainly your monthly payments. You can ask the company directly the reason of imposing such a huge fee on your renting deal. Try to go for a negotiation. If you are lucky enough, then you can get back security deposits and other fees which were the obstacles in making your deal a good one.
- Customer service:- A good company should know how to render a satisfactory service to its customers. They should keep contact with you even after the end of your rent contract.
If you want to transfer your leasing contract with another company, then also you can do that. But, if your contract terms do not agree with shifting the contract to any other renting company before the end of the term, then you have no choice. Most of the renting companies now provide more flexibility, especially if you are renting a heavy equipment, so that you can have some room for negotiation.