There are a lot of different types of lease finance partners out there. Some are great and others are just plain terrible. With the types of leases out there, it is important to know what kinds of financing options you can receive before you sign a lease.
The best type of lease finance partner is a direct-hire (or “direct-lease”) lease. A direct-hire lease is a lease in which the landlord pays the tenant directly for the space. The landlord is not involved in the decision about whether or not to rent the space to the tenant. This means that the landlord can negotiate the lease with the tenants without the tenant’s approval or knowledge.
Direct-hire leases are not a good fit for the majority of lease finance companies because they require the landlord to give up complete control of the rental properties. This means that lease finance companies will probably have less of a chance of having the right property for your business. This is why direct-hire lease financing is best paired with a direct-lease financing partner. Direct-lease financing is a type of direct-hire lease where the landlord has a financial interest in the transaction.