What is Equipment Leasing for Businesses?
Equipment leasing is a financing arrangement where a business rents equipment from a leasing company for a specified period instead of purchasing it outright. This allows businesses to use the equipment without the full upfront cost. Leasing is often used for various types of equipment, including machinery, vehicles, technology, and office equipment.
Types of Equipment Leases
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Operating Lease:
- Description: Short-term lease where the lessor retains ownership of the equipment. Typically, the lease term is shorter than the equipment’s useful life.
- Usage: Ideal for businesses that need equipment for a specific project or a limited period.
- Pros: Lower monthly payments, off-balance-sheet financing, option to upgrade equipment.
- Cons: Higher overall cost if the equipment is needed long-term.
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Finance Lease (Capital Lease):
- Description: Long-term lease that resembles a loan. The lessee can eventually own the equipment.
- Usage: Suitable for businesses that intend to keep the equipment for most of its useful life.
- Pros: Ownership at the end of the lease, tax benefits (depreciation and interest deductions), fixed payments.
- Cons: Higher monthly payments, reflected as a liability on the balance sheet.
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Sale and Leaseback:
- Description: The business sells equipment to a leasing company and then leases it back.
- Usage: Helps businesses raise capital while still using the equipment.
- Pros: Immediate cash influx, continued use of essential equipment.
- Cons: Ongoing lease payments, potential loss of ownership.
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TRAC Lease (Terminal Rental Adjustment Clause):
- Description: Common for vehicles, providing flexibility at the lease end regarding purchase or return.
- Usage: Often used by businesses needing fleet vehicles.
- Pros: Flexible end-of-lease options, potentially lower payments.
- Cons: Residual value risk if equipment value declines more than expected.
- Equipment Finance Agreement: It’s not a lease but similar to retail finance with similar clauses as lease where it’s non-cancellable and you’re still liable for the full term like a lease regardless of when you pay it off. You’ll get the same tax advantages of capital lease.
Credit Requirements for Start up equipment leasing:
Businesses who are just starting out could benefit from our Startup Equipment Financing.
- Business bank account
- Personal guarantees from all owners.
- Minimum 625 credit score.
- No bankruptcies in the last 7 years.
- No unresolved tax liens.
Financing Equipment for Start ups: We offer various financing options tailored to your needs:
- Equipment Financing: Spread the cost of the roll-off truck over time with fixed payment terms.
- Equipment Leasing: Lease a roll-off truck with off-balance sheet financing options like Fair Market Value (FMV) leases.
Additional Financing Benefits:
- $99 for the First 6 Months: Get started with minimal upfront costs.
- 90-Day Deferred Payments: Pay nothing for the first three months.
Equipment Leasing Application Only up to $250,000
Equipment leasing up to $250,000 for established business with strong credit. Minimum time in business for app-only is 5 years with 700+ credit score along with strong paynet & paydex.
Covers many types of heavy equipment.
Easier to get than a traditional business loan
Less paperwork
Fast processing time
Less stringent requirements for qualifying
No collateral needed, the equipment is the collateral
May require less credit score for you and your business as well
Equipment Lease for Commercial Trucks
Ensuring your commercial fleet outdated? Are you reliant on newer equipment? Up-to-date is crucial for running a successful any business. However, these specialized vehicles come with significant costs. Leasing equipment range from $5,000 to $3,000,000.
Affordability is paramount when investing in new or used trucks. Leasing offers the advantage of spreading the cost over an extended period, with loan terms of up to 84 months available. This results in reduced fixed monthly payments, making these high-ticket items more manageable for businesses.
Leasing equipment that depreciates in value can also preserve working capital. By avoiding large upfront expenditures, businesses can allocate funds towards hiring skilled personnel, marketing efforts, and other operational needs. Leasing truck and service trucks both fall in the commercial truck categories of Heavy Equipment.
Advantages of Choosing Liberty Capital Group, Inc.
Liberty Capital Group, Inc. offers several advantages over traditional lenders:
– Corp-Only Availability: We cater exclusively to corporations, providing tailored financing solutions for businesses.
– Up to 120% Equipment Cost Coverage: Our financing options can cover not only the equipment cost but also associated soft costs.
– Flexible Funding Amounts: Access financing ranging from $250,000 with a simple one-page application to $5,000,000 with financial statements.
– Quick Approval Process: Benefit from next-day funding approval, ensuring minimal downtime for your operations.
– Approved Equipment Vendors: We work with approved packaging equipment vendors, streamlining the acquisition process for our clients.
– Lowest Industry Rates: Enjoy competitive rates for qualified borrowers, reducing the overall cost of financing.
– Eligibility for New and Used Equipment Financing: Whether you’re purchasing new or pre-owned equipment, we’ve got you covered.
– Minimal Impact on Personal Credit: Our financing solutions do not appear on personal credit reports, preserving your personal credit history.
– No Pre-Payment Penalties: Enjoy the flexibility of paying off your loan early without incurring penalties.
Equipment Leasing Programs
At Liberty Capital Group, Inc., we offer aggressive financing programs designed to meet the diverse needs of our clients. Our solutions typically involve two primary options:
– Equipment Financing: Spread the cost of your business essential equipment over time with fixed payment terms.
– Equipment Leasing: Opt-in for off-balance sheet financing with Fair Market Value (FMV) leases, providing flexibility at the end of the lease term.
Additional Financing Benefits Our financing options include:
– $99 for the First 6 Months: Start with minimal upfront costs.
– 90-Day Deferred Payments: Pay nothing for the first three months.
– Working Capital Loans: Access short-term cash flow solutions for immediate needs.
– Fast Approvals: Apply online for funding up to $250,000 with a Streamlined Process.
Preferred Leasing Vendors
Utilizing our extensive experience in equipment vendor financing, we can assist you in finding reputable funding for new or used equipment buyers. Download our equipment vendor program here.
Click here to become an approved equipment vendor.
Get Started Today!
If you’re seeking a reliable funding partner for your roll-off and garbage truck financing needs, apply online today or call our Funding Specialists at 888-588-4128 for personalized assistance. Let Liberty Capital Group, Inc. empower your business with comprehensive financing solutions tailored to your requirements. APPLY HERE>
Our small business financing experts are available to guide you through the funding Process.
Despite technological advancements underwriting, however, equipment leasing, predominantly have remained the same process. It still involve personal interaction with an underwriter to ensure as fraud prevention. Automation may not suffice, particularly when dealing with a third party like the vendor and the complexities of equipment purchase. In such scenarios, business owners are often better served by collaborating with a Business Loans Broker like Liberty Capital Group, Inc., who can steer them in the right direction.
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