Welcome to Liberty Capital Group’s “Why Lease Equipment?” page. Leasing equipment can be a smart financial decision for businesses of all sizes and industries. Here, we outline the benefits and advantages of equipment leasing, helping you understand why this option might be the best fit for your business needs.
Benefits of Leasing Equipment
1. Preserve Cash Flow
One of the most significant advantages of leasing equipment is the ability to preserve your cash flow. Instead of making a large upfront payment to purchase equipment, leasing allows you to spread the cost over manageable monthly payments. This approach helps maintain liquidity and ensures you have funds available for other critical business expenses.
2. Access to the Latest Technology
In many industries, technology and equipment are constantly evolving. Leasing enables businesses to access the latest and most advanced equipment without the burden of ownership. When the lease term ends, you can upgrade to newer models, ensuring your business stays competitive with state-of-the-art tools and machinery.
3. Flexible Terms
Equipment leasing offers flexibility in terms and conditions. You can choose lease terms that align with your business’s operational needs and financial capabilities. Whether you need short-term or long-term leases, there are options available to fit your specific requirements.
4. Tax Benefits
Leasing equipment can provide tax advantages for your business. Lease payments are often considered a business expense and can be deducted on your tax return. This can result in significant tax savings and improve your overall financial position.
5. Easier Budgeting
Leasing allows for predictable monthly expenses, making it easier to budget and plan for the future. With fixed lease payments, you can avoid unexpected costs and better manage your business’s finances.
6. No Obsolescence Risk
When you lease equipment, you eliminate the risk of obsolescence. As technology advances, older equipment can become less efficient and more costly to maintain. Leasing allows you to return outdated equipment at the end of the lease term and upgrade to newer, more efficient models.
7. Hedge Against Inflation
Leasing equipment helps preserve your business’s working capital is critical but the saying “Dollar today is worth more than a dollar tomorrow”. lease agreements do not typically require significant down payments, you can maintain your existing credit lines for other essential business needs, such as working capital or unexpected expenses.
Types of Equipment Leasing
When it comes to acquiring the equipment your business needs, leasing offers a variety of options tailored to different financial and operational requirements. At Liberty Capital Group, we provide several types of equipment leasing to suit your specific business needs. Here, we explain the most common types of equipment leasing and how they can benefit your business.
1. Operating Lease
Overview
An operating lease is a short-term lease agreement that typically lasts for a period shorter than the equipment’s useful life. This type of lease is ideal for businesses that need equipment for a specific project or a short duration.
Benefits
Lower Monthly Payments: Operating leases often have lower monthly payments compared to finance leases.
Off-Balance-Sheet Financing: This lease type may not appear on your balance sheet, which can improve financial ratios.
Flexibility: At the end of the lease term, you have the option to return, renew, or purchase the equipment.
2. Finance Lease (Capital Lease)
Overview
A finance lease, also known as a capital lease, is a long-term lease that is more akin to a purchase. At the end of the lease term, you typically have the option to buy the equipment at a predetermined price.
Benefits
Ownership Potential: You have the option to purchase the equipment at the end of the lease term.
Fixed Payments: Predictable monthly payments make budgeting easier.
Tax Benefits: Interest on the lease payments may be tax-deductible.
3. Fair Market Value Lease
Overview
A fair market value (FMV) lease allows you to use the equipment for a set period and return it at the end of the term or purchase it at its fair market value. This lease is suitable for businesses that expect equipment needs to change over time.
Benefits
Flexibility: Provides the option to purchase, return, or upgrade the equipment at the end of the lease.
Lower Initial Costs: Typically requires a lower initial payment compared to purchasing the equipment outright.
Up-to-Date Technology: Allows you to regularly upgrade to the latest equipment.
4. $1 Buyout Lease
Overview
A $1 buyout lease is similar to a finance lease but with a purchase option at the end of the term for a nominal amount, usually $1. This lease is ideal for businesses that intend to own the equipment at the end of the lease period.
Benefits
Ownership: You effectively own the equipment after the lease term for just $1.
Predictable Costs: Fixed monthly payments make financial planning easier.
Asset Building: Adds the equipment to your list of business assets.
5. Sale-Leaseback
Overview
A sale-leaseback arrangement involves selling your existing equipment to a leasing company and then leasing it back. This option is excellent for businesses looking to free up capital tied up in owned equipment.
Benefits
Immediate Cash Flow: Converts existing equipment into immediate working capital.
Retained Use: Continue using the equipment without interruption.
Tax Advantages: Lease payments may be tax-deductible as an operating expense.
6. Master Lease Agreement
Overview
A master lease agreement allows businesses to acquire multiple pieces of equipment under a single leasing contract. This lease type is ideal for companies that need various equipment at different times.
Benefits
Convenience: Simplifies the leasing process by consolidating multiple leases into one agreement.
Flexibility: Add equipment to the lease as needed.
Streamlined Management: Easier administration and tracking of leased assets.
Types of Equipment You Can Lease
At Liberty Capital Group, we offer leasing options for a wide range of equipment financing and leasing, including:
- Construction Equipment: Excavators, bulldozers, cranes, and more.
- Medical Equipment: MRI machines, X-ray machines, and other healthcare technology.
- Office Equipment: Computers, printers, and office furniture.
- Manufacturing Equipment: CNC machines, assembly line equipment, and robotics.
- Transportation Equipment: Trucks, trailers, and delivery vehicles.
- Technology Equipment: Servers, networking hardware, and software solutions.
Our Leasing Process
Step 1: Pre-approval Consultation
We start with a consultation to understand your business needs and the type of equipment you require. We will work with you to identify the best leasing options available.
Step 2: Application
Complete our simple online application form. Provide basic information about your business and the equipment you wish to lease.
Step 3: Approval
Our team will review your application and provide a decision within 24 to 48 hours. We offer fast and efficient approval processes however some transaction will have delays. There is no one-size-fits all loan for these types of transactions.
Step 4: We’ll send Term-Sheet and Prepare Documentation
Once approved, we’ll finalize the leasing agreement, detailing the terms, conditions, and payment schedule. We ensure that the terms are clear and tailored to your business’s financial situation.
Step 5: Contact Vendor and Set up Equipment Delivery
After the agreement is signed, the equipment will be delivered to your business location. We coordinate with suppliers and vendors to ensure a smooth and timely delivery process.
Step 6: Ongoing Support
Throughout the lease term, Liberty Capital Group provides ongoing support to ensure your satisfaction. Whether you need assistance with the equipment or have questions about your lease, our team is here to help.
What is 100% Pre-funding?
Pre-funding is whereby you as a borrower agree to have the lender release funds to the vendor prior to shipment or delivery. You agree to the lease term without having possession of the equipment.
There’s a risk where there’s delay. Or some occasion some vendors don’t deliver equipment at all. Or deliver wrong equipment. NO matter what most equipment leases, equipment finance agreements and any financing related to equipment financing and truck leasing most are no-cancellable contract. Meaning you are liable for the full term regardless of when you pay it off. Basically, you will have to multiply the terms by the payment to come up with true balance, but you might receive some early payoff discount. However, you’re liable for the full term based on the agreement but some lenders will be willing to get paid early, so contact them to negotiate an early payoff.
There is a retail finance agreement through some dealers where it’s considered retail therefore, this non-cancellable contract might not apply. If so, you will have the benefit of paying it off early and benefit from the time accrued as your only cost of capital, barring future unpaid balance to accrue further interest.
Why Choose Liberty Capital Group?
Experience and Expertise
With over 20 years of experience in the financial industry, Liberty Capital Group has the knowledge and expertise to provide the best leasing solutions for your business
. Our team of professionals understands the unique needs of various industries and is dedicated to helping you find the right equipment to drive your business forward.
Customized Solutions
We recognize that every business is unique, and so are its equipment needs. Liberty Capital Group offers customized leasing solutions tailored to fit your specific requirements. Our flexible terms and competitive rates ensure that you get the best deal possible.
Fast and Easy Process
Our streamlined application and approval process is designed to be fast and hassle-free. We know that time is of the essence, and we work diligently to get you the equipment you need quickly and efficiently.
Exceptional Customer Service
At Liberty Capital Group, we prioritize customer satisfaction. Our team is committed to providing exceptional service and support throughout the leasing process and beyond. We are here to answer your questions, address your concerns, and ensure that your leasing experience is smooth and successful.
Strong Vendor Relationships
We have established strong relationships with a wide network of vendors and suppliers. This allows us to offer a diverse range of equipment options and ensures that you have access to the latest and best technology available.
Get Started Today
Ready to explore the benefits of leasing equipment for your business? Contact Liberty Capital Group today to speak with one of our financial advisors and find the right leasing solution for your needs.
Let Liberty Capital Group help you access the equipment you need to grow and succeed. Explore the advantages of leasing and discover how we can support your business’s equipment financing and leasing needs and beyond. We strive to provide the best funding solution to all our clients regardless of sales revenue, or credit history.