Equipment Lease Types
Wondering what type of equipment lease options are available to you or your customers?
Whether you are a looking for equipment financing for yourself or for your customer – we have the lease solution that will fit. Learn more about the various equipment lease types we offer below.
Commercial Lease (Business Equipment Lease)
Our options are an affordable way to finance your business equipment. Whether you are looking for a lease for yourself or for your customer we can provide the monthly payment that will fit into your budget.
We specialize in providing equipment leasing for products with a selling price starting as low as $500 up to $100k.
Small business equipment leasing, is it right for you?
- 80% of all U.S. companies use equipment leasing
- 7 of 10 small business owners start with less than $20,000 in working capital
Lease-to-Own is a financial services solution that provides for ownership of the equipment following the receipt of all scheduled payments. Technically, the lease payment for a Lease-to-Own contract is calculated over a period of time that is three months less than the typical lease term, (33 months vs. 36 months) and the last three payments that are made encompass the purchase of the equipment. Payments are more expensive than a FMV transaction, however, the Lessee owns the equipment outright once all contracted payments have been made.
Fair Market Value Equipment Lease (FMV)
A Fair Market Value (FMV) equipment lease solution provides for the lowest payments possible, while delivering access to critical equipment for a defined period of time. At the end of that period of time, and after all scheduled payments have been made, the Lessee (user of the equipment) can take advantage of one of three options: return the equipment, purchase the equipment for a specific amount (typically 10% of the total receivable) or continue to rent the equipment on a monthly basis.
$1 Buyout Equipment Lease
Our $1 Buyout Equipment Lease is similar to Lease-to-Own in that ownership is passed after the last payment has been made. However, the full term of the contract is utilized to calculate payments, and there is only a single dollar payment requirement to be made at the end of the contracted lease period. $1 Buyouts are only available in certain states and industries. Contact us for details.
Split Funding Lease Option
We understand how tight cash flow can be and that there are times where there may be a separate supplier, distributor, or manufacturer that needs to be paid. Our Split Funding Product is the cash flow solution for you. With our Split Funding offering we pay the two parties involved in the lease separately so you have one less thing to worry about.
Our Split Funding Product allows you to:
- Obtain more buying power with your supplier
- Satisfy supplier method of payment requirements
- Simplify your cash flow management
Leasing is the right choice!
Leasing is one of the fastest growing ways of acquiring equipment in business today. Recent surveys found that 80% of U.S. businesses, from Fortune 500 to the local family business, lease some portion of their equipment. A growing business often faces the dilemma of limited cash flow and the need to add equipment. Leasing can put the equipment to work for you with real cash flow advantages and without major capital investment. We can lease virtually any type of equipment, including software and installation.
Low monthly payments
The monthly lease payment will usually be lower than the payment required by other methods of financing.
No need to tie up capital
Keep your business’ cash for future needs, unexpected expenses or working capital when revenues are low.
You can always lease equipment — you can’t lease money!
Most types of financing require down payments of up to 25%, whereas leasing covers 100% of the cost of the equipment. Most leases require only one or two payments in advance. Get immediate use of the equipment with minimal up-front cost.
Preserve existing lines of credit
Leasing has no impact on your bank credit lines. Protect your borrowing power for other business needs or opportunities.
Technology is changing at a rapid fire pace. What meets your business’ needs today may be obsolete three years from now. Leasing allows you the flexibility to maintain a competitive edge by giving you today’s best technology then allowing you to upgrade when the equipment has outlived its advantage.
Fixed payments through the term of the lease
Unlike bank lines of credit that usually have variable rates, lease payments are fixed no matter what happens in the market. By choosing to lease you won’t be a victim of skyrocketing interest rates. Remember the 80’s when rates rose from 9% to over 20% in one year? That can’t happen with leasing.
Significant tax and accounting advantages
Leasing eliminates the need for complicated depreciation schedules since lease payments are generally line-item expenses on your P&L statement. And since lease payments can usually be treated as a pre-tax business expense you may even reduce your taxes. Paying cash for equipment automatically adds 30-40% to the cost when you realize that cash = profits, and taxes are paid on profits. Leasing is the right choice! It minimizes demands on cash flow, eliminates obsolescence, keeps your bank lines open, saves on taxes and shelters you from the market