Equipment Leasing

Equipment Leasing can be a smart way for businesses or government entities to get equipment they need while gaining important financial advantages. Equipment financing provides flexibility and opportunities for businesses without access to needed funds.

What is an equipment lease?

An equipment lease is a usage agreement between the equipment owner and the equipment user: The user pays a periodic rental fee for the right to use the equipment.

Leases offer a variety of payment structures and end-of-term options. They can be structured to fit your exact business needs. With ProActive Capital Funding, our highly experienced equipment funders help you decide which type of leasing program is right for your business.

How does equipment lease financing work?

To qualify for equipment financing, you must have some form of credit. Most funders require an application and credit check to determine how much financing you can receive. Usually the amount of the down payment you can make will determine how much of the total lease you can finance.

Why choose equipment leasing instead of cash purchase or bank loan?

Leasing provides many advantages:

  • Convenience: The whole equipment leasing process is fast, simple, and often less costly than other financing options.
  • Equipment Obsolescence – If your business is technological, equipment quickly becomes obsolete. Leasing gives you the advantage of the latest available technology at an affordable cost. The latest and best equipment lets you do the job faster, better, and cheaper than the competition.
  • Capital Conservation – If your business cannot afford to purchase needed equipment, leasing is ideal. It allows you to pay affordable monthly payments instead of a big capital outlay.
  • Cash Flow – Lease payments are fixed. Smaller, frequent lease payments free up cash so the business can adapt more easily to business conditions and opportunities. Paying a fixed monthly sum over an agreed period of time also simplifies budget management.
  • Credit Lines – Leases do not affect bank credit lines, so they preserve your borrowing options. An operating lease is viewed as an expense and not a debt, so it does not affect your credit rating.
  • Tax Benefits – Leasing may not appear as liability on your balance sheet. Lease payments are classed as expenses, and they are made from pre-tax dollars rather than after-tax profits. In many cases, equipment lease payments can be treated as a fully tax deductible expense.
  • Simplified Accounting – Lease payments are little more than a line item in your monthly cost of operations; that frees you from time-consuming depreciation schedules.
  • Lease-specific bonuses – In some cases a lease can be arranged to include specific benefits, such as equipment servicing, making variable payments, or including soft costs (such as software, transportation, and maintenance) .

For additional information, contact:

Ray King <> The ProCoach
Phone: 832-615-9124 * Fax: 832-615-9570