Equipment Leasing & Financing
Our Equipment Leasing & Financing experts specialize in developing a financial solution to meet your business goals while taking into consideration all the current and projected market forces which allows you to take advantage of benefits such as:
- A simple one-page application process for equipment lease financing up to $100,000.
- 24-hour approval process on application only transactions. 2-3 day approval process on transactions over $100,000.
- Standard payment terms ranging from 12-60 months.
- Lease financing can be structured under different programs ranging from Lease Purchase, Operating Lease, Equipment Finance Agreement, and Sale Lease Back all with little cash outlay.
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Flexible equipment uses covering everything from vendor down payments, freight, and installation.
What Is Equipment Leasing
Equipment Leasing = Renting machinery, vehicles or other hardware. This reduces the need to invest capital into equipment. Financial institutions or leasing companies own the equipment, while the business uses it. The Equipment Leasing Association of America estimates that 80% of all companies lease or rent some of their equipment worth $220 billion in 2004.
Benefits of Equipment Leasing
Advantages of Equipment Leasing
Advantages include getting needed equipment without paying the high costs up front. Lines of credit stay freed up because the leases are not considered bank loans. Lease payments can potentially be deducted from taxes as a business expense. It is also possible to easily upgrade equipment once a lease expires.
Disadvantages of Equipment Leasing
When it comes to start up businesses, it is likely the owner will be obligated to use his / her personal credit to secure the lease. Equipment leases are more expensive in the long term. Leases require a term of financial commitment.
How To Lease Equipment for Commercial Use
There are four primary ways through which one can secure an equipment lease:
- Banks and Financial Institutions: they may be difficult to find, but they often offer lower costs and better customer service.
- Equipment Dealers and Distributors: They can help arrange financing using an independent leasing company. Independent leasing companies vary in size and scope offering many financing options.
- Equipment Manufacturers: They have access to captive leasing companies which are subsidiaries of manufacturers and related firms.
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Brokers: They represent a small percentage of the leasing market. Much like mortgage or real estate brokers, they charge a fee to act as an intermediary between lessors and lessees.