EQUIPMENT LEASING

Equipment Leasing – How to use it

Short on cash, but need new equipment to grow?

Lease what you need.

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 its 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.

Supply: Abundant. Of the billions of dollars individual and institutional investors pour into the capital markets each month, a good hunk finds its way to that use these funds to purchase equipment on behalf of small businesses. With more and more money flowing into the markets, leasing companies are flush with capital. As a result, they are eager to do business and respond to competition

 

 

 

 

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