Chapter 8 Leasing, 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, equip- ment, 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 151 American Management Association www.amanet.org