An equipment lease can be structured in a variety of ways to meet the exact needs of each client. Payments can vary seasonally to match uneven cash flow, they can be tied to specific projects, or "stepped" to increase or decrease over time. Transactions up to $100,000 can be approved on the basis of a simple one-page credit application, usually within hours.
Leasing provides 100% financing - including items such as shipping, installation, software, and training. There is no need to tie up valuable working capital, making it available for more profitable opportunities like adding sales personnel, increasing marketing or taking advantage of quantity discounts.
Bank lines are designed for short term needs and should be preserved for that purpose. Leasing is like opening an additional and separate line of credit - expanding, as opposed to restricting - your financial resources.
Leases do not require substantial down payments or compensating balances, do not have floating interest rates or restrictive covenants, and can usually be structured with lower monthly payments.
Since lease payments can be set up as a direct operating expense, they are paid from pre-tax dollars versus after-tax profits. This provides faster write-offs freeing up more cash quickly.
Leasing facilitates equipment upgrades since there are usually no penalties for the actual upgrade and because a large portion of the investment in the old equipment has already been written off.
Contact us directly to find out which products qualify for a leasing option.