Equipment Leasing

Equipment leasing is not much different than car leasing. The car is the collateral in car leasing and the equipment is the collateral in equipment leasing. If an equipment lease goes into default, then repossession can occur in which case the piece of equipment is taken from the user. There are three basic rules to getting a good rate when leasing: Good credit, Reasonable debt ratio, Solid operating history for your company.

Most new business owners use equipment leasing to get their business up and running. Start up costs can be intimidating for a start up business without purchasing special equipment. Equipment leasing offers a small business owner with a way to get the equipment they need without using vital capital or credit lines. Depending on your credit history and your operating history, it may be an alternative to equipment purchasing.

If your credit history is not perfect or if you don't have a lot of years in business you might want to consider equipment leasing over equipment purchasing. Equipment leasing is usually easier for new business owners because it allows them to get the equipment they need without using capital or credit lines.

Reasons To Lease Equipment

• Equipment leasing enables you to pay as you use.
• Monthly payments on an equipment lease are generally fixed for the entire term of the lease.
• No down payment is usually required on an equipment lease.
• 100% Equipment Financing with Low Rates.
• Equipment leasing provides the lessee with greater structuring flexibility.
• Easier Than Bank Loans.
• Purchase or Renewal Options.
• If you are in business where you have important alternative uses for money on hand, leasing always wins out in the lease versus buy analysis.
• Easier Cash Flow Forecasting.
• Tax Benefits.

Your new machinery and equipment will allow you to preserve your existing cash flow and to be able to respond to new business opportunities. The profits generated from the productivity of the equipment are usually greater than the lease payments.

Please Contact Us for more information.