Equipment Leasing
Short on money, but need equipment to grow your business?
What It Is: Equipment leasing is basically a loan in which the lender buys and owns equipment and then "rents" it to a business at a flat monthly rate for a specified number of months, until the term ends. At the end of the lease, the business may purchase the equipment for its fair market value (or a fixed or predetermined amount say 1 dollar), continue leasing, lease new equipment or return it.
Appropriate for: Any business at any stage of development. For start-up businesses with no revenues, "small ticket" leases, those of $30,000 or less, are feasible on the personal credit of the founders or owners - if they are willing to make the monthly payments.
Supply and demand: Abundant. Leasing companies will purchase equipment on behalf of small and medium sized businesses. Leasing companies are flush with capital. As a result, they are more eager than a bank to do business and respond to competition.
Best Use: Financing equipment purchases. Leasing can also finance the soft costs often associated with equipment purchases, such as installation and training services. Find out how: info@connectlease.com
Cost: Although lease financing is generally more expensive than bank financing, you can usually write it off against income, and in most instances it's more easily obtained and faster than dealing with a bank.
Ease of Acquisition: Easy for leases of less than $30,000. An application for a small-ticket lease is generally no more complex than filling out a credit card application. Leases for more than $30,000 require detailed financial information from the business, and the leasing company conducts a more thorough credit analysis than it would for a smaller transaction.
First Steps
1) Finding an equipment-leasing company is easy if you use a broker. For more information visit our website: www.connectlease.com.
2) Like a mortgage broker, they work with various funders to find the right deal for your company.
3) It's a good idea to get a quote upfront. For more information, email us: info@connectlease.com.
As a final point, when looking for a leasing company you should understand whether you are talking to a broker - who simply structures deals, then gets them financed through any of the leasing companies he or she works with - or a leasing company that is actually putting its own funds on the line.
There's nothing wrong with brokers. He or she might have intimate knowledge of the marketplace, unique funders they can access and know where to go to get the kind of lease and money you need to grow your business.
Tags: medium sized businesses, equipment leasing company, leasing companies, leasing, business, equipment
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