What is Equipment Leasing
Equipment Leasing allows you to purchase new equipment, refinance old equipment, and use your unencumbered equipment to obtain working capital. An advantage of leasing is it does not drain your bank account with a large purchase and allows your company to better predict your cash flow. Regardless of the type of industry, there are companies that will finance hardware, earth moving equipment, manufacturing equipment, technology equipment, transportation equipment, and many other options. Many businesses prefer leasing over buying due to its cash flow advantages, tax deductions, flexibility, and efficiency.
How Does Equipment Leasing Work
- You choose the equipment you want and provide invoices from the vendor, making sure to include all shipping, installation, and setup fees.
- You fill out a simple lease application, specifying the term and type of lease you prefer.
- After your lease is approved, we will purchase the equipment and have it delivered and installed (if applicable) at a time specified by you.
- You make fixed monthly payments for the term you have chosen, enjoying the benefits of the equipment as though you own it.
- At the end of the lease, as written in the lease contract, you have a few options:
- Turn the equipment in and lease new equipment.
- Extend the lease or pay month-to-month to keep the same equipment.
- Purchase the equipment at the price predetermined in the lease contract.
Benefits of Equipment Leasing
- Fast credit decisions
- Minimal upfront cost
- Preserve existing bank and credit card lines
- Affordable fixed monthly payments
- Taxes advantages
- Protect against obsolete technology