Equipment leasing usually consists of a simple lease. A simple lease (or rental) gives you, the lessee use and control of the equipment for an agreed period for a set cost. A lease with the possibility of purchase offers you the opportunity to purchase the equipment at the end of the lease, if all the payments have been paid in full. Some common pieces of equipment that are regular leased, either because of their high initial cost or because of propensity for quick obsolescence are: passenger and private aircraft, large trucks and delivery vans, heavy construction equipment, manufacturing equipment, automobile fleets, computers, office copiers and multi-user software.
Leases provide a viable option for start – up companies to acquire equipment when they have not generated any revenue. Smaller leases, those below $100,000 can often be obtained on the personal credit of the owners of the company. Leases for $100,000 or less are fairly easy to obtain with a minimum amount of paperwork. Leases for $100,000 or less are often called “small ticket” leases. Larger leases of $100,000 require much more detailed application with a thorough credit analysis of your company.
Commercial Loan Direct is a company that can provide equipment leasing that makes economic for your business. Begin your application with this short one page form .
The leasing company and the equipment seller are usually not the same entities. This is not always apparent to the business owner. When you find the equipment that you need and you inform the seller that you want to lease, the seller refers you to a leasing company. The leasing company actually purchases the equipment and leases it to you.
There are many benefits to leasing vs. buying the equipment that you need. Some have been mentioned elsewhere on the business-money-source website.
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