EQUIPMENT LEASING - Software, Hardware, Fleets and Leasebacks
Many small businesses need to frequently acquire new and replace existing machinery, equipment, furniture, fleets, hardware, software and more within their operations. Some small businesses need to do these types of procedures two or more times a year depending upon the growth of their business or how likely these items are to become dysfunctional. However, it has become increasingly difficult to obtain capital from traditional lending sources and as a result, many small businesses and entrepreneurs turn to business leasing brokers or direct lenders to acquire hardware, software, equipment, machinery, furniture and commercial fleets.
Leasing comes with a number of advantages over purchasing including normally little upfront payments and 100% tax deductibility. Leasing is more expensive than purchasing, except in cases of high-tech equipment or other types of equipment with a high rate of obsolescence where the manufacturer introduces new versions very often. However, despite the higher cost, a lot of small businesses and entrepreneurs have a difficult time obtaining financing in more traditional means and thus have to turn to leasing to continue the growth and development of their operations. Other Leasing benefits include: Conservation of credit lines and working capital, helps overcome budget limitation, maximizes cash-flow, provides off-balance-sheet financing and hedges against inflation.
The lender, also known as the lessor, purchases the item the business needs to lease from a retailer, distributor, manufacturer, etc., and then leases the item back to the small business owner at a flat monthly rate for a specified number of months. Some usual leasing programs include: Finance Leases, True Leases and Operating Leases. At the end of the lease period, the small business owner may purchase the item for fair market value, return it, or choose a variety of other options provided by the lender in question. Some typical purchase options include: $1.00 Purchase Option, Fixed Purchase Option, Fair Market Value Purchase Option and the Prepaid Purchase Option.
After reviewing our solutions and resources, please give us a call at 586-480-2140 or email us at Support@1stCapitalLoans.com to begin the process of growing, developing and sustaining your business through the assistance of our product suite. We look forward to working with you, consulting you on your growth needs and helping get the capital, technology and risk management implemented into your operations for the success of your enterprise.