Equipment
leasing is basically when we, (the lessor),
buy and own the equipment you select and rent it to your
business, (the lessee), for a fixed monthly payment for
a specified period of time, usually from one to five
years.
Any business at any stage of
development is a candidate for equipment
leasing. For start-up or young businesses with limited
revenues, leases up to $75,000 are available on the
personal credit of the founders or owners. For
established, mature businesses leases up to $5 million
with terms to 10 years are available.
One of the main benefits
of leasing is that you may be able to fully deduct your
lease payments as a current operating expense for tax
purposes. Consult your tax professional to be sure.
A leasing can finance the soft
costs often associated with equipment
purchases, such as warranties, shipping, installation,
maintenance, and training.
Leasing provides 100%
financing, conserving your cash and
preserving bank lines of credit for working capital
purposes.
Leasing provides a close
matching of the lease term and payments to
the revenue produced by your use of the equipment. The
equipment pays for itself while you add to your
productivity and bottom line.
At the end of the lease
you may purchase the equipment for its fair market
value, a fixed predetermined amount such as 10% of the
original cost of the equipment, or for as little as
$1.00 you can continue leasing the equipment or lease
new equipment. Or you can return the equipment.
According to the Equipment
Leasing Association, as many as 8 out of 10
U.S. businesses lease all or part of their equipment.
Consider equipment leasing from
American Leasing Capital for your
business, today!
Since 1990, All You Need To Know About Leasing is Our
Phone Number
AMERICAN LEASING CAPITAL
4944 Cass Street, Suite 802 San Diego, CA 92109
(800) 235-1378 Toll-free
(858) 581-6000
Local (858)
581-0600
Fax
One of the biggest reasons
to lease business equipment is it offers you minimal upfront costs. Unlike
bank loans that may require a substantial down payment, two advance payments
are generally all that is required at the beginning of a lease. This lets
you keep your capital in the bank while making an important equipment
investment in your business.
In addition, some businesses lease
equipment as a way to protect against obsolescence. When setting up your
lease, take time to evaluate the useful life of the new equipment. Choose a
term length that will let you upgrade to newer equipment, if needed, before
the old pieces are out-of-date.
Finally, leasing can lessen the burden
taxes have on your business. Depending on how your lease is structured, you
may be able to fully deduct lease payments as a current business operating
expense, as opposed to depreciating the value of the equipment as if it were
a capital expenditure. Talk to your tax professional about the positive
impact this can have on your business.
Since 1990, All You Need To Know About Leasing is Our
Phone Number
AMERICAN
LEASING CAPITAL 4944
Cass Street, Suite 802 San Diego, CA 92109
(800) 235-1378 Toll-free
(858) 581-6000
Local (858) 581-0600
Fax
Here at American Leasing Capital
there are few limits to the type of equipment you can lease. For instance
you can lease new and used equipment including agricultural, automotive,
computers, construction, data communications, electronic, engineering,
fixtures, furniture, industrial controls, machinery, intra/internet servers
and routers, machine tools, material handling, medical, metal fabrication,
office machines, printing and graphic arts, restaurant, robotics, scientific
instruments, software, store fixtures, telecommunications, voicemail systems
and anything used in your business.
Generally most of our leases are
structured to include soft or intangible costs like software, warranties,
maintenance contracts, training, installation and shipping costs. Talk to
one of our Lease Consultants to see if your equipment qualifies.
While leasing hard assets is easy, our
leases are for amounts from $5,000 to $5 million with terms from 12 to 60
months. Leases with terms as long as 10 years are available.
Since 1990, All You Need To Know About Leasing is Our
Phone Number
AMERICAN
LEASING CAPITAL 4944
Cass Street, Suite 802 San Diego, CA 92109
(800) 235-1378 Toll-free
(858) 581-6000
Local (858) 581-0600
Fax
American Leasing Capital
offers a wide variety of leasing programs to enable your company to
acquire the equipment it needs with an innovative financing solution that
works best for you.
Lease Purchase ($1.00 and 10% Buy-Out)
This program allows you to buy the equipment at the end of the lease term
for as little as $1.00. For most companies that intend to keep the equipment
at the end of the lease, this is the best option. In essence, you are
building equity in the equipment, so you can also sell the equipment at the
end of the lease or trade it in for the latest technology. This lease is
also known as a capital or finance lease.
Operating Lease (Fair Market Value Buy-out)
This lease provides you with the option to purchase the equipment at the end
of the lease for its then fair market value or continue leasing the
equipment based on its fair market value or return the equipment. The
payment during the term is lower than on a lease purchase, but the cost at
the end of the lease is higher.
Deferred Payment Lease
This lease is attractive if the equipment will be used for a project that
won't generate revenue for a short period of time, possibly three to six
months. The lease is structured so that the initial months have nominal or
no payments and then a normal payment after the initial period.
Seasonal Payment Lease
This lease is perfect for businesses with seasonal cash flows. We can
structure a lease where the payments are lower during your slow months and
higher during the rest of the year.
Step-Up/Step-Down Payments Lease
Under this lease payments can be set to match a company's cash flow.
Payments can start low and then increase during the later portion of the
lease, or payments can start high and then decrease, whichever matches your
cash flow best.
Municipal and Governmental Lease
This program is available to all city and state agencies such as public
school districts, municipal hospitals, and police and fire departments. Due
to the tax-exempt status of the lessee, rates are much lower than standard
commercial rates.
We also offer: Master Leases, Lease
Lines-Of-Credit, Sale/Leasebacks, Equipment Financing for Franchisees and
TRAC (Vehicle) Leases.
Talk to your American Leasing Capital
Lease Consultant to determine which lease program is just right for your
business.
Since 1990, All You Need To Know About Leasing is Our
Phone Number
AMERICAN
LEASING CAPITAL 4944
Cass Street, Suite 802 San Diego, CA 92109
(800) 235-1378 Toll-free
(858) 581-6000
Local (858) 581-0600
Fax
While fixed monthly payments
over the term of the lease are most common, they are not your only option.
Depending on your company's financial situation, equipment lease financing
can include one of several payment plans that may be more appealing.
A Skip Lease is ideal if your company's
cash flow ebbs and flows with the seasons. A lease with this repayment
structure allows you to skip payments during slow months without being
penalized. It is ideal for recreational and agricultural businesses that
rely heavily on certain times of the year for significant portions of their
revenue.
Step-up leases provide a solution for
companies with limited cash that are depending on the acquisition of
specific equipment to increase revenue. This type of lease recognizes that
the company will be able to handle increased lease payments over time, and
keeps payments low at first then ramps them up according to a pre-determined
schedule.
The 60 or 90-day Deferred Payment Lease
is an alternative to the Step-up Lease. Just as its name implies, this lease
allows you to defer your first payment for 2 or 3 months. Often you will
only have to pay a very small up-front payment with this option.
Since 1990, All You Need To Know About Leasing is Our
Phone Number
AMERICAN
LEASING CAPITAL 4944
Cass Street, Suite 802 San Diego, CA 92109
(800) 235-1378 Toll-free
(858) 581-6000
Local (858) 581-0600
Fax
Our lease terms range
anywhere from one to ten years, although the majority fall between two to
five years. The lease term that you decide upon will depend heavily on what
you wish to do with the equipment at the end of your lease. Usually, you
have four choices.
You may:
1. Return the equipment with no further obligation.
2. Renew the lease for an additional period.
3. Purchase the equipment for a nominal fee or fixed price agreed upon at
the lease inception.
4. Purchase the equipment at its then fair market value.
Before deciding on any particular end of
lease option, carefully consider what state the equipment will be in at the
end of the lease, and whether you'll want to obtain a newer model at that
time.
Since 1990, All You Need To Know About Leasing is Our
Phone Number
AMERICAN
LEASING CAPITAL 4944
Cass Street, Suite 802 San Diego, CA 92109
(800) 235-1378 Toll-free
(858) 581-6000
Local (858) 581-0600
Fax
