Is Financing or Leasing Your
Manufacturing Equipment
The Right Solution for Your Business? 

Business Loans
Manufacturing Equipment Financing 
$5,000 – $500,000 loans
2-6 year terms
Rates as low as 6%

There are a number of advantages to leasing or financing your building machinery or highway construction equipment. Primarily, the ability to stay on the cutting edge of technology. New tools are emerging all the time, and leasing equipment means you can utilize the latest products available without taking on extravagant costs. When the lease is up, you can simply opt for the newest line of products available.
How Equipment Leasing Works
Leasing contruction equipment works in the same way as leasing a car.  By entering into a lease, you have the right to use the equipment without the burden of ownership. The advantages of a lease are lower payments as you’re paying for only a portion of the assets, reduced upfront costs (if any), flexible end of term options.

In the contruction equipment market the typical lease term is between two and six years. At the end of the initial term, you have the option to purchase, renew, extend, or return the equipment. 
 
How Equipment Financing Works
Equipment financing refers to the practice of taking out a loan to pay for equipment over time. By choosing to finance equipment, you will eventually own the asset outright. This works well for organizations with strong credit and for mature technologies or for assets with a long life expectancy.
Financing is popular, in part, due to restricted capital budgets. While most equipment financing is collateralized debt, the loan amount may impact your available line of credit. Since construction equipment can cost several hundred thousand dollars, the best practice is to work closely with your financing partners.

Advantages of Equipment Leasing
Control and conserve cash---You avoid the upfront costs of purchasing equipment and the lease becomes a fixed monthly line item which can help you allocate financial resources more effectively.

Built-in life cycle management---Leasing affords you the option to upgrade your construcition equipment more frequently, with lease terms typically between 2 and 6 years. 

Maintain strategic flexibility---Large capital purchases can tie you into a specific strategy or technology. Leasing construction equipment enables you to adapt as the industry evolves and increases flexibility for you and your organization.

Quick and simple application process---approval and execution of a lease can be quick and easy.

Advantages of Equipment Financing
Acquire assets with little or no immediate cash outlay. You will not have to part with a large lump sum payment to acquire the equipment. The capital you conserve can then be allocated to other areas of your organization.

Ownership. After the terms of the loan are satisfied, the title will pass to you, the owner. For mature equipment with a long useful life, this will help you maximize your return on investment.

Section 179 of the IRS Tax Code 
It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves. It allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy or finance a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. 
Lease payments appear as an expense deduction on your taxes.

Contact Us to Learn More!
Equipment Financing Questionnaire
Name
Email
What kind of equipment?
FICO Score
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Company Name | Industry
Years In Business
Amount Requested
Website
What will you use it for?
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