Chapter 8Leasing, Factoring, and Government Programs

Traditional sources of debt financing from commercial banks are not your only choices when you are trying to establish credit and borrow money. Your business—especially if it’s in an early stage of its development—simply may not have the collateral or the credit history to qualify for traditional debt financing. This chapter will look at alternative debt strategies and lending services, which include:

Leasing. A leasing company (the lessor) acquires real estate, equipment, or other fixed assets, then executes a contract with a second party (the lessee), who will use the asset. The lessee (that’s you) makes fixed payments to the lessor for a specified period of time. Leasing provides a flexible, ...

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