Some Helpful Tips to Help You Decide if Equipment Leasing Will Work for You

bulldozersA few months ago in our post, What are the Benefits of Equipment Leasing? we talked about the benefits that various organizations and companies can gain by leasing equipment. One of the most important benefits, similar to fleet leasing, is that leasing equipment can help your company preserve capital. According to the 2014 Survey of Equipment Finance Activity (SEFA) conducted by the Equipment Leasing & Financing Association, the trend of equipment leasing is on the rise. New business volume grew 9.3% in the equipment finance industry during 2013.

The top-five most-financed equipment types were transportation, computer equipment, agricultural, construction and medical equipment. The top five end-user industries representing the largest share of new business volume were services, agriculture, transportation, industrial/manufacturing, and wholesale/retail.

An article in Business Fleet, Hidden Benefits of Leasing Equipment, talks about the benefits of equipment leasing in more detail. The article also provides some helpful tips to help you decide if equipment leasing will work for you, which we thought we would share:

  • Get a flexible payment structure to fit your business needs. If your business has a slow season, ask for seasonal payment plans.
  • Consider a leasing program that provides for lease expiration at or near warranty expiration.
  • With an operating lease, if you think you’ll keep the equipment after the lease term, ask for a cap on the purchase price, such as “fair market value (FMV) not to exceed 20% of the equipment’s cost.”
  • Understand the fine print. Most leases contain a termination value schedule, detailing the amount that will need to be paid to terminate the lease.

At Capital Lease Group, we offer a wide range of leasing programs custom-designed to help preserve your cash flow and regular credit lines, while providing you with fixed-rate financing. We offer a personalized service, staffed with knowledgeable people ready to listen to you and work toward helping you find the funding you need.

Some of our programs include:

  • Dollar Buyout Lease – Conserves your credit line plus available tax benefits and ownership at end of lease.
  • Fair Market Value Lease – Lower payments, better cash flow, purchase option.

These are just a few of the many programs we offer, and they are so varied, we’re bound to have one that fits your needs. Plus our policy of Rapid Funding means we pay the manufacturer quickly – avoiding any hassles for you. Under specific circumstances, our programs can provide an excellent hedge against obsolescence, as well as certain tax advantages. All of which can help ensure your company’s present and future growth.

If you have any questions about whether equipment leasing might be right for your company, please feel free to contact us.

Capital Lease Group is a leading fleet leasing provider in Massachusetts and beyond. We are committed to structuring a lease that will be designed to fit your business rather than having your business conform to the confines of a standard lease. We will invest the time to understand each customer’s individual needs while offering a full range of leasing services and products that will complement each customer’s goals. Our experienced staff of knowledgeable experts in sales, administration, and service will help you feel comfortable so that your main focus will be on your company’s vision while we handle all of your fleet requirements.