Access The Equipment You Need
Up-to-date and well-functioning equipment is vital to your operations, employee safety, and the success of your business. But heavy-duty machinery, commercial vehicles, customized equipment, and professional-grade tools come with a hefty price tag. If you are looking to acquire equipment for your business but do not want to impede your available capital and cash flow, Equipment Leasing is a great option. And with the variety of lease types available from First Capital Leasing, we can help you find a financing solution that works for your business.
What Is Equipment Leasing?
Equipment Leasing allows you to access the right equipment, right away. Ideal for a range of industries including Construction, Energy, Oil & Gas, Tech, Industrial, Hospitality, Healthcare, Manufacturing, and more, a leasing solution allows you to finance the equipment you need today over a term agreement.
The Benefits Of Equipment Leasing
There are benefits to Equipment Leasing over outright purchase:
- Flexible payment schedules
- Optimized cash flow
- Improved competitive advantage with the latest equipment
- Increased buying power
- Fast acquisition of equipment
- Tax-deductible financing
Benefits of Lease Types
This type of lease is ideal when acquiring the equipment you intend to use for a longer period of time (5 years or more). This option is better suited for equipment such as machinery and tools and not ideal for electronics or technology which quickly become obsolete. A Capital Lease includes one or more of the following criteria:
- Ownership of the asset transfers to the lessee at the end of the contract
- The lease contains a bargain purchase option
- The lease term is greater than 75% of the estimated economic life of the leased equipment
- The present value of the minimum lease payments is greater than 90% of the leased property’s fair market value at the inception of the lease
This option is best for businesses that wish to own the leased asset at the end of the term. Capital Leases benefit the lessee by using depreciation and interest deductions to offset income and offering a manageable and appealing purchase price option when the lease agreement is up.
An Operating Lease offers the lessee access and unrestricted use of the assets during the lease, but does not automatically transfer ownership at the end of the lease. The lessee is responsible for the condition of the asset when it is returned to the lessor.
This type of lease is useful in situations when your business needs to upgrade or replace equipment at regular intervals. This lease is considered to be an ‘off-balance sheet’ liability, allowing the lessee to acquire the equipment for just a fraction of the useful life of the asset. It may contain a provision to purchase the equipment at the end of the lease for fair market value.
Skip Payment Lease
Just as the name suggests, this type of lease allows you to structure payment schedules according to the unique cash flow streams of your business.
This customized option is ideal for seasonal businesses as it provides the opportunity to match the timing of expenses vs revenues to optimize your financial strategy.
Step Payment Lease
This lease type allows you to structure your agreement in one of two ways:
- Step Up: Your payments start smaller, but increase in increments over the term of your loan.
- Step Down: Your payments are initially higher but decrease in increments.
This type of lease is ideal for businesses that experience fluctuating cash flow as a factor of their operations.
A Master Lease is an encompassing agreement that allows a business to lease assets now, but to also acquire needed assets in the future under the same lease terms without having to negotiate a new contract.
This type of lease streamlines financing strategies and allows businesses to expand and grow secure in the terms of their lease contract.
Sale and Leaseback
A Sale and Leaseback contract is an arrangement in which a business can sell equipment or machinery assets to a financing provider at fair market value then lease back those same assets from the purchaser.
This type of lease agreement provides a swift injection of cash for businesses that need available working capital. It also simplifies budgeting with fixed monthly payments and reduces liabilities tied to ownership of assets.
Lease Line of Credit
A Lease Line of Credit streamlines your leasing needs by providing a standing, pre-approved leasing line of credit.
This type of lease agreement allows you to move quickly to acquire assets secure in the knowledge that your financing support is ready and available.
Leasing Options That Work For Your Business
Secure the equipment you need to ensure the efficient and effective operations of your business. With a variety of financing solutions and options to structure a leasing strategy that is ideal for you, First Capital Leasing understands the ever-changing equipment needs and fluctuating cash flow of business. We partner with our clients to provide tailored approaches to financing. If you are interested in exploring the leasing options available and determining which lease type will work for your business, connect with our team at First Capital Leasing and upgrade your business today.
Frequently Asked Questions
Is there a maximum lease amount I can secure?
There is no maximum. We want to work with you to ensure you can secure the equipment you need. Contact our team to explore your options for equipment leasing.
Do you work directly with the vendor?
Our team does work directly with the seller to ensure a smooth and seamless transaction. We mobilize our team quickly so your leased equipment is available asap.
How do I apply?
We have an easy application process here. And once you have applied, there is no need to apply again. We will continue to partner with you for all your business financing needs.