Category Archives: Euqipment Leasing

Find Out How Equipment Leasing Tax Benefits Can Help Your Business

Posted by on February 7, 2012 No comments

To succeed in business these days, you know you need to be able to save as money as you can, in order to make enough to survive until the next year, and beyond. Leasing the equipment you need to run your business is a good start, because it saves you from having to purchase everything from the start. But did you know that there are also some important equipment leasing tax benefits that many business owners overlook every year? In this article, we will show you the difference between leasing options for equipment, as well as tax tips as to which type holds the most benefits for your company. Read more »

Equipment Leasing: 5 Ways Leasing Helps Cash Flow

Posted by on February 7, 2012 No comments

What is an equipment lease and what will it do for my business? An equipment lease is simply a long-term agreement to rent equipment. You maintain the equipment and the lease term usually does not exceed the life of the equipment. At the end of the lease term, you turn the equipment back over to the company which originally leased it to you. But in the meantime, you’ve enjoyed the use of newer equipment to grow your business without having to raise a down payment that would have been required if you tried to purchase equipment. Best of all, you are not stuck with obsolete equipment.

When the average person thinks about equipment leasing, what typically comes to mind is building cranes, dump trucks and tractor trailers. Equipment leasing is much broader than that; what can be leased has expanded considerably. For instance, leases are available for:

  • Furnishings and equipment for doctors’ offices and medical facilities
  • Office furnishings, including computers
  • Restaurant furnishings for front and back of the house, practically turn-key
  • Church furnishings
  • Agricultural machinery
  • Trucks and commercial vehicles
  • Road-building equipment
  • Construction equipment, including office trailers

Leasing is one of the fastest growing ways to acquire equipment. Companies ranging from Fortune 500 to family businesses lease a portion of their equipment. Businesses often have limited cash flow but still find themselves needing to add equipment. Let’s look more closely at the five ways leasing helps your cash flow: Read more »

Equipment Lease Tips For Startup Businesses

Posted by on January 13, 2012 No comments

For a new business, trying to get a bank loan can be a challenge especially without business credit history to back up your loan application. If you need equipment financing an issue, perhaps you may consider business equipment leasing?

Who Can Lease

Both new and established businesses are eligible to apply for equipment lease financing. In fact, this financing technique has been employed by many small businesses and large corporations for a long time.

Why Lease Equipment

Rather than apply for a bank loan to buy the needed equipment, a new business owner can apply for a “lease” to avoid unnecessary delays with the business operations. Instead of waiting for months to get their business loan approved, leasing equipment involves a quicker and uncomplicated procedure.

Add to this, equipment lease financing is generally cheaper since it does not require a down payment. Many leasing companies offer flexible repayment terms (monthly, quarterly, bi-annual, annually) to complement the business’s needs.

Indeed, equipment lease financing is recommended for smaller businesses. By leasing equipment, the business owner can use its working capital on other expenditures such as purchasing supplies, hiring workers, advertising your products and services, instead of spending the money on devices or special machines. Read more »

Business Equipment Leasing Overview (2)

Posted by on January 13, 2012 No comments

Types of Equipment Lease Financing

Although lessors may have different names for them, you’ll find that there are basically two types of equipment lease financing: finance and true.

What is a finance lease? Finance leases are also known as capital leases, conditional sales, or dollar buy out leases. These leases are mainly for businesses that wish to keep the leased equipment at the end of the lease. The advantage to the lessor in this case is it gives them the option to purchase the equipment for a small fee, usually $1.00. This works for the lessor because payment terms on finance leases tend to last close to the expected useful life of the equipment and the payments themselves then to be higher. Read more »

Business Equipment Leasing Overview (1)

Posted by on January 13, 2012 No comments

What size of business should consider business equipment leasing?

Any business at any stage of development should consider business equipment leasing as it is a very cost effective alternative to out-right purchasing. For start-up businesses with little to no revenues, smaller leases, those of $100,000 or less, are easily obtained and are feasible on the personal credit of the owner(s).

Who supplies leasing companies with capital?

Of the billions and billions of dollars that investors pour into the capital markets each month, a good portion finds its way to leasing companies. These leasing companies then use these funds to purchase equipment (business and commercial) on behalf of businesses. As the economy improves and more and more money is flowing into the markets, leasing companies are flush with capital. As a result, they are eager to do business and respond to competition with lower monthly rates.

What is a lease? A lease lets you pass the buck – at least for a while. A lessor (third party funding source) will purchase the equipment that you want and as the lessee, you can use the equipment in exchange for regular payments made over a contracted period of time. The contract can be tailored to your specific needs. But, just like a regular loan, you do need to have a good credit score and be able to prove that you can pay the lender the negotiated payments. Read more »