Almost every enterprise whether it is a corporation, partnership, proprietorship, professional, charity, club, society, hospital, service, and every level of government is a potential lessee. Any Businesses that requires up to date technology to be competitive can be a lessee. Companies that can get past the fixation of ownership and realize it is the use, not ownership, of assets that generate income, are prime candidates for leasing. Many enterprises have leased some type of equipment …many more have not. There is no definition of a “typical” lessee. Each leasing situation is different, just as every business enterprise is different.2013 lets companies deduct up to $500,000 worth of qualifying new and used business equipment and technology.
Equipment lease financing is simple and convenient. You do the research and choose the make and model of equipment best suited for the business enterprise from the vendor/supplier of your choice, for the best cash deal. The potential Lessee then contacts Lease-Line, completes a credit application & provides supporting financial information as required. Upon lease credit approval and acceptance, Lease-Line will forward the lease contract for signatures. Once the lease contract and related documentation are returned to Lease-Line, a purchase order is issued to the vendor. The vendor then delivers the equipment to the lessees’ place of business. After an independent auditor has confirmed delivery of the equipment, Lease-Line will pay the supplier and the lease commences.
Typically, a lease involves no money down, which basically results in 100% financing. The lease client doesn’t worry about paying Taxes up front either, since they are calculated on the rental. Two rentals and a signed lease contract seal the deal. On a five-year lease, that amounts to less than 5% investment. Effective costs compared with conventional bank financing are close. Those who can take advantage of the tax deductibility of the rentals can often increase expenses for tax purposes thereby reducing or deferring the payment of taxes.
Terms are tailored to the useful life of the equipment with a fixed rental throughout the term. Upgrade privileges are standard. Trade up value, or a purchase option can be predetermined.
An equipment lease, is an agreement under which the owner of the equipment, conveys to the user, the right to use the equipment, in return for a number of specified rentals, over an agreed upon time. The OWNER of the equipment is referred to as the “LESSOR”. The USER of the equipment is referred as the “LESSEE”. Leasing is a form of business financing. It is an additional source of credit that allows more efficient use of capital resources.
Do you want a better looking balance sheet? Thanks to equipment and technology leasing a better looking balance sheet is obtainable do to equipment and technology leasing that’s because your monthly lease payment is viewed as a business expense instead of a liability or long-term debt. As you know, having little or no debt on your company’s financial statements is a huge benefit when it comes time to secure business funding
Now that you know the advantages of equipment leasing, it’s time to get started with King Commercial Capital.
As a Business Owner, you are well aware of how important it is to keep your business credit line in good shape and usable. Getting funding for business expansion, staffing and other operational expenses requires solid credit, and having an open credit line allows you to respond immediately in a time of need. Equipment leasing lets you keep your business credit line open and strengthen the cash flow of your business.
Depending on the type of business you own, equipment and technology leasing may help you stay on top of the latest advances in equipment and technology. Being able to make upgrades to newer equipment and technology when your short-term lease is up can give your company advantages over your competitors. So, if your business uses equipment that is periodically updated with better technology and capabilities, leasing might be the best option.
