As a business owner, you know that equipment costs form a sizeable chunk of your operating costs and overhead. Purchasing new equipment can impact a company’s bottom line. Luckily, there are many options when it comes to financing new equipment for your business. Lendvue and its team of lending experts can help you locate the right financing options for your specific business needs. Equipment financing options can include:
Lease to Own
Businesses that use this method lease needed equipment with the option of purchasing the equipment at substantial savings at the end of the lease term. Equipment may be purchased for as little as 10% of the original cost. Tax savings are also another benefit of this option.
Used Equipment Financing
Savings can be had by purchasing used equipment in good condition. Many lenders offer this option, helping companies finance the purchase of used items.
A company purchases new equipment, sells it to a lender, then arranges to lease the equipment back. This can free up capital for use in other aspects of the business, has substantial tax benefits, and places the depreciation burden on the lender rather than the company using the equipment.
Also known as a Terminal Rental Adjustment Clause, this option is for vehicles used primarily for business purposes such as delivery trucks or company cars. At the end of the lease period, companies have the option of purchasing the vehicle for 20% of its original price and are eligible for tax benefits.
Step or Skip Payments
This option is tied to the company’s profitability. When profits are lower, companies may pay less or skip payments altogether. Step-up or step-down payments have variable payment rates, depending on the age of the lease period.