Equipment Leasing Benefits

Equipment Leasing offers several advantages to bank financing or paying with cash. Some of the most common benefits include:

Conserve Your Working Capital:
Most businesses fail due to a lack of cash or access to capital. Leasing the equipment needed for your business operations requires a minimal upfront cash investment, typically first and lasts months rent. Now you can use your cash for other business needs (marketing, add an employee?).

Preserve Your Bank Credit Lines:
Leasing equipment preserves your line of credit at the bank. Use your line of credit to operate your business more efficiently. Keep your bank credit line available for opportunities and emergencies.

100% Equipment Financing:
The lease structures we work with enable you to finance 100% of the cost of obtaining the new equipment you need. “Soft” costs such as sales tax, shipping, installation and training can be included in the lease payments. Reducing upfront cash output.

Tax Benefits:
When you finance equipment via traditional bank loan financing the equipment is depreciated over several years. With a lease the monthly payments can be expensed the year they occur. One of the best equipment leasing advantages. Consult with your Tax Advisor or legal counsel for more details.

Quick Approvals:
If your company is like most, quick and intelligent decisions are a key to your success. Most credit applications are approved within 24 to 48 hours.

Off Balance Sheet Financing:
Lease financing is a great way to acquire new equipment without negatively impacting your company balance sheet. The payments relating to an off-balance sheet lease are typically fully tax deductible. If you are concerned that new debt will hinder an existing bank borrowing covenant then an operating lease may be the answer for acquiring your next piece of equipment.

Payments are Fixed:
Most banks establish your line of credit or loan parameters based on the Prime Rate which fluctuates up and down on a monthly basis. Equipment Leasing gives you the piece of mind to know that your monthly lease payment will be fixed for the duration of the lease.

Rates are Fixed:
Compared to bank prime rates, lease rate factors are fixed. If you were in business in the 80's remember when rates went from 8% to 21.5%.

Start-Up Financing:
Most banks will not consider equipment financing for start up companies. We finance Start-Up's on a regular basis by using additional collateral you already own to offset risk OR check out our Off Lease Equipment which we can finance to start-ups.

Convenience:
Our one page online application is good for most equipment financing requests. Most applications are approved the same day, 24-48 hour turn around times are standard.

More Payment Options:
Lease programs can offer you deferred payments for up to 90 days, step payment programs and contact payment options for seasonal use machinery and equipment. Leasing is by far a more flexible financing option than a bank loan.

Lease Used Equipment:
Most of the time banks will not consider financing used equipment purchases. Banks have a tough time gauging the useful life and value of used equipment. We use appraisers to determine the useful life and resale value to enable your business to lease used equipment.

Establish Credit:
If your company is a start up business, establishing new credit is essential for future growth. By leasing you establish credit depth which will make obtaining future credit easier when you need it most – expansion and growth.

Avoid Equipment Obsolescence:
At the end of an equipment lease you will typically have the option of simply returning the leased equipment. This will enable you to get the most up to date technology for the new equipment you will be leasing to replace the old equipment.

Hedge Against Inflation:
Leasing is a smart decision in that you can use the equipment today, but the monthly expense payment is made with tomorrow’s dollar.

Better Financing Options Than Banks:
Most banks will require a significant down payment, usually 20-40% of the cost of the equipment being purchased. Banks may look for additional collateral, blanket liens, large compensating balances in your bank account and may even place restrictive lending covenants on you. Banks do not offer any type of bad credit equipment financing solution, we do.

There are just a few of the advantages of leasing equipment.

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