EQUIPMENT FINANCE AND LEASING

 

Capital Type Definition

Leasing the equipment you need rather than purchasing: Gives you the equipment,
software, and furniture your business needs. Does not tie up your cash, receivables,
credit cards, or bank lines. Reduces the amount of cash you need and can be expensed
for taxes.

 

Financing: Making of a loan using the equipment as collateral. Good operating
history, credit rating, debt ratios are the keys. Apply

Equipment financing - easier access to what you need

Equipment financing is the fastest growing type of business financing.

The advantages:

  • It is easier to obtain and more flexible than traditional loans and,

  • It can provide you with certain unique tax or accounting benefits.

Preservation of available credit
If structured properly the 'debt' does not have to be shown as a direct liability on your financial statements and consequently may allow you to preserve your borrowing availability with your bank and other creditors. This may also result in improved debt-to-equity and earnings-to-fixed assets ratios thereby improving how the lending community views your company in general.

Custom tailoring
Certain types of equipment financing may be obtained with a simple one-page application. Your payment structure can meet a variety of your business needs, such as:

  • deferred payments,

  • seasonal payments,

  • balloon payments,

  • quarterly payments,

  • step up and step down payments.

Leasing: Contract for a fixed period of time in exchange for payments, usually
in the form of rent for equipment. Typically lower credit requirements. Apply

Equipment leasing: conserves cash with max tax benefits

What happens at the end of the lease?

Operating leases require the equipment to be returned to the lessor at the end of the lease. Some leases have a $1.00 Purchase Option or a guaranteed purchase amount (usually 10%). Other leases have a "Fair Market Value" purchase agreement where the amount is to be determined.

Are my monthly rental payments tax deductible?

$1.00 Purchase option leases are deductible as a capital purchase. Fair market value and operating Leases you may write-off the full payment as an expense. Consult your accountant.

What interest rate am I paying ?

There is no interest on a lease, it is a rental payment. If the difference between the equipment cost and the monthly payments was "interest", then this varies with the term, cost and lease buyout residual.

Municipal Leasing: A lease transaction with any government agency (i.e.
Federal, State, County, City etc.).Apply

Municipal equipment leasing - tax-exempt financing

Municipal equipment leasing is for:

  • State governments and agencies

  • County governments and agencies

  • City governments and agencies

  • Other public entities funded by state and local taxes

Municipal equipment leasing is best used when government agencies need:

  • To purchase equipment and there isn't room in the current budget.

  • To make an equipment purchase that is too small to justify a bond issue.

  • To purchase equipment but its useful life doesn't justify long term financing.

  • To purchase equipment but, whether for timing or debt limitations, cannot fund the purchase.

If this describes your circumstances, then a deferred payment plan is necessary to acquire the equipment you need.

Sale and Leaseback: Sale of an asset for cash, with a contract to lease the
asset back from the funding source purchasing the asset. Sales tax an issue
here. Apply

Equipment sale leaseback - turning assets into cash:

There is a new approach for any business owner of any size to raise quick capital. Get up to 70% of the original purchase price against equipment you own. One of the greatest benefits of this loan is that the money received can be used for any purpose whatsoever.

Equipment sale leasebacks, what are they?
The sale of an asset for cash while the asset remains on the seller's property with a contract to lease the asset back from the source purchasing the asset.

What can the money be used for?
Cash flow, expansion, improvements, advertising, restructuring, inventory, purchases, debt payments, taxes, partner buyouts . . . any reason!

Why would I use my equipment to get working capital?

  • Get up to 70% of the purchase price against existing equipment you own

  • The equipment stays on your property

  • You can write the monthly payments off up to 100%

  • No interruption in the use of the equipment

  • No restrictions on how the money is used

  • No upfront application fees

  • No other collateral needed

  • Does not interfere with your credit lines at the bank

  • Use this money for any reason

  • Application is fast and easy