What is business equipment leasing?
Business equipment leasing is essentially a loan in which the lender buys and owns equipment and then rents it out to a business at a flat monthly rate usually for a specified number of months. Like any lease, when the term is completed, the business may purchase the equipment for its fair market value (or a fixed or predetermined amount), continue leasing, lease new equipment, or return the equipment.
What size of business should consider business equipment leasing?
Any business that requires secure cash flow, at any stage of development should consider business equipment leasing. It’s a highly cost effective alternative to out-right purchasing. For start-up businesses with little to no revenues, smaller leases are easily obtained and are feasible on the personal credit of the owner. Small business owners get
Who supplies leasing companies with capital?
Of the billions and billions of dollars that investors pour into the capital markets each month, a good portion finds its way to leasing companies like Connect Lease Corp. The companies then use these funds to purchase equipment (business and commercial) on behalf of businesses. As the economy improves and more and more money is flowing into the markets, leasing companies are flush with capital. As a result, they are eager to do business and respond to competition with lower monthly rates.
Some advantages to leasing.
Leasing can also finance the soft costs often associated with equipment purchases, such as installation and training services. Leases are usually easier to obtain than funding through bank financing. Monthly lease payments make it easy to plan financial strategy by budgeting operating expenses to scale your business growth. Keep capital costs low and take advantage of taxable benefits.
How easy is it to obtain a lease?
Very easy for leases of less than $100,000. An application for a smaller 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. To learn more, check out our leasing process.
How much funding is typically available?
The range of funds available is typically unlimited.