Short on cash but need new equipment to grow? Lease what you need.
What is Leasing: 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. At the end of the lease, the business may purchase
the equipment for it's fair market value (or a fixed or predetermined amount),
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 $100,000 or less, are
feasible on the personal credit of the founders or owners if they are willing to
make the monthly payments.
Best Use: Financing equipment purchases. Leasing can also finance the soft costs
often associated with equipment purchases, such as installation or training
services.
Cost: Lease financing is generally more expensive than bank financing, but in
most instances more easily obtained.
Ease of Acquisition: Easy for leases of less than $100,000. An application for a
small-ticket lease is generally no more complex than a credit card application.
Leases for more than $100,000 require detailed financial information from the
business, and the leasing company conducts a more thorough credit analysis than
it would for a smaller transaction.
What is Leasing: 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. At the end of the lease, the business may purchase
the equipment for it's fair market value (or a fixed or predetermined amount),
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 $100,000 or less, are
feasible on the personal credit of the founders or owners if they are willing to
make the monthly payments.
Best Use: Financing equipment purchases. Leasing can also finance the soft costs
often associated with equipment purchases, such as installation or training
services.
Cost: Lease financing is generally more expensive than bank financing, but in
most instances more easily obtained.
Ease of Acquisition: Easy for leases of less than $100,000. An application for a
small-ticket lease is generally no more complex than a credit card application.
Leases for more than $100,000 require detailed financial information from the
business, and the leasing company conducts a more thorough credit analysis than
it would for a smaller transaction.