Equipment Leasing is a financial process that allows the equipment end-user (the lessee) to use capital generating equipment, while paying for the use of the equipment through the company's operating budget. Rather than tie up cash reserves in an equipment acquisition, the majority of US and Canadian companies turn to an equipment lease due to the flexible terms and low out-of-pocket costs that are available. Traditional "operating leases" also allow the lessee to fully expense each payment, as they are made.

Is equipment lease financing the right tool to GROW your business? Read below and get familar with equipment leasing terminology and the equipment financing process.

Equipment Leasing Companies

Equipment leasing companies are often specialty lenders, offering lending and financing expertise within a given industry or niche. An equipment leasing company will often have access to bank funds/lines-of-credit not available to the public. Since every business and every industry has their own unique needs, choose an equipment leasing company with expertise in your market. Dealing with an equipment leasing company that understands how your equipment generates or conserves capital can help save time with credit approval and final funding.

Most equipment lease requests for established companies (more than 2-years time-in-business) can be processed using a simple one-page credit application. Financed amounts over $35k often require the equipment leasing company to obtain an average daily balance on business checking/savings accounts. Since many banks no longer process account rating requests, the fastest way to secure approval is often to provide copies of the first page (summary) of the last 3-months of business banking statements when applying.

Benefits of Equipment Leasing

Stay Current With Technology- Are you in an industry that relies heavily on constantly changing technology? If so, an equipment lease might make perfect sense. In fact, a 2005 ELA (Equipment Leasing Association) survey found that over 65% of businesses felt that the ability to stay current with the latest technology was the #1 perceived benefit of equipment leasing. Equipment leases can be structured so that equipment can be upgraded easily at the end of the lease term.

Fixed Monthly Payments- Equipment leasing allows for easier budgeting through fixed monthly payments. No need to worry about floating rates, compensating balances and other constantly changing variables.

NO Down Payment- Equipment leasing allows you to take possession of needed equipment with NO down payment. Often, only the first month's lease payment and a small documentation fee is needed to begin equipment delivery.

Alternative Use of Funds- Rather than tying up $50k in a new equipment purchase... find better uses for your funds! With the economy slowed, take this chance to hire talented salespeople your competition might have had to let go.   

Commercial Equipment Leasing

Who qualifies for commercial equipment leasing?

Basically, any business or freelance industry professional can lease/finance equipment. Freelance professionals must have a valid business license if required in their local, and must be able to show Schedule C (other business income) on previous years federal tax returns.

Equipment leasing options and programs are available across nearly every industry and include, but are not limited to:

• Medical Equipment Leasing
• Dental Equipment Leasing
• Office Equipment Leasing
• Industrial Equipment Leasing
• Restaurant Equipment Leasing
• Computer Equipment Leasing
• Capital Equipment Leasing
• Construction Equipment Leasing
• Recording Equipment Leasing
• Transportation Equipment Leasing
• Printing Equipment Leasing
• Video Equipment Leasing
• Farm Equipment Leasing
• Broadcast Equipment Leasing
• Lab Equipment Leasing
• Audio Equipment Leasing
• Lighting Equipment Leasing