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Is Equipment Leasing Right For Your Business?Every business, from a sole proprietorship to a major corporation requires equipment to function and exist in business. Be it computers, telephones, copiers, furniture or any type of machinery, it all represents equipment that can be acquired in one of three possible ways.
Equipment leasing is when you (the lessee) needs equipment, selects the equipment from a vendor or reseller of your choice and then goes to a leasing company and request that we (the leasing company) purchase the equipment on your behalf.
You can choose a lease term of 1 to 5 years (or more depending on the amount of the lease) with a variety of purchase options at the end of the lease such as $1 or fair market value (FMV).
The FMV lease gives you the opportunity to keep the equipment at the end of the lease
for a negotiated FMV cost or return the equipment to us. The key difference between the lease and a bank loan is ownership. By letting us (the leasing company) purchase the equipment we are the owners of the equipment. With a bank loan you are the owner. Click Here For Information On The Difference Between A Lease And A Bank Loan. The fact that you do not own the equipment during the lease term allows you (if structured correctly) to write off the entire cost of the principle and interest over the term of the lease as opposed to depreciating the same cost over the life (book value) of the equipment ( as you would if you paid cash or got a loan from the bank). Since the lease term is usually shorter or equal to the useful life of the equipment, this becomes a key advantage in doing a lease. Therefore, the effective interest rate is usually much lower with the lease rather than the bank loan.
How We Can Help Arrange Your Equipment Lease
1-888-308-7160 Ready To Apply For Your Equipment Lease?Click here for our SECURED Equipment Leasing application Click here for our Offline Faxable Application form . Please fill the application out completely. |
Questions?
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