Today’s credit crisis is quickly forcing small business owners to realize it’s a whole new ball game when it comes to finding sources of financing.

This includes not only cash needs, but also funding new equipment and refinancing owned equipment.

Equipment leasing may be just the answer for owners realizing the financing market has changed. Equipment leasing is a quick, simple and effective way to get the equipment you need. There are many advantages to leasing, especially in the current credit crisis. Most businesses can still qualify, and most types of equipment can be leased.

Right now, 80% of small businesses lease some or all of their equipment.*

In the months to come, that percentage will increase exponentially.

What Are The Advantages Of Leasing?

Faster Than Traditional Financing
Getting a loan can be a long, painful process. Compare that to leasing, which can be completed sometimes in less than a week.

Easier Than Traditional Financing
Getting a lease is often as simple as filling out a 1-page application. Leasing companies look more at the equipment itself as collateral, less on the business or owner’s credit.

No Cash Down
When you purchase equipment, banks usually a require 20-30% cash down payment. This can quickly deplete your working capital, and, with credit tightening, you may not have other sources of cash. Leasing companies do not require a down payment.

100% Financing For Everything
Not only can you get 100% financing for the equipment, you can get it for other components of the sale … installation, labor, maintenance contracts, training, consultation, etc.

No Fees If Not Used
Banks often charge a fee on your line of credit, even if you don’t use it. Leasing does not.

Leasing Is More Flexible
Leasing plans can be set-up to meet your needs …for example, maybe you need your payments to start after 90 days so you can install and get the equipment running. Traditional financing does not permit this.

Does Not Affect Your Debt Ratios
When you borrow money for cash flow or for new purchases, it limits how much more money you can borrow. Leasing usually does not affect your ability to borrow money for other uses.

No Additional Liens
Banks often put liens on the other assets of your business when you get a loan from them, including receivables. Leasing companies only put a lien on the equipment you finance through them.

Fully Expense Lease Payments
This provides valuable and immediate tax deductions.

Lower & Fixed Monthly Payments
Monthly payments are generally lower, and they are fixed … there are never any nasty surprises like you can get with bank loans.

Accounting Simplified
No more complicated depreciation schedules, just simple "rent" payments.

No More Obsolescence
You can keep your equipment updated, and use the latest technology for maximum efficiency and profit.

Types Of Leases

• Lease Purchase. Allows you to purchase the equipment at the end of the lease period, usually for a nominal amount such as $1.00.
• Operating Lease. Similar to the Lease Purchase, only you purchase the equipment at the end of the lease for its fair market value.
• Venture Lease. Often used by new companies, backed by venture capital.
• Deferred Payment Lease. Nominal or no payments for a period until revenues are generated make this ideal for some circumstances.
• Seasonal Payment Lease. Ideal for seasonal businesses with higher payments during the time of the year with the greatest income, lower payments for the off season.
• Step-Up or Step-Down Lease. Payments can start low and "step up" to higher payments as sales increase … or they can "step down" from higher initial payments to lower payments to decrease finance charges.

So, How Do I Get A Lease?

One of our associates has specialized in equipment leasing for over 25 years. He can help match your needs with a leasing company that can give you the best deal for your circumstances and equipment leased.

While you could certainly deal directly with leasing companies yourselves, it does not cost you any more to work with our Resource, and, in most situations, he’ll get you better rates than you could get elsewhere. And, if your credit isn’t the best, he specializes in hard-to-finance deals.

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*Equipment Leasing Association
  ethXbiz Resources