Questions On Leasing

How long does it take to get my financing approved?
Many transactions are approved in less than three hours and most are approved the same day. Larger and/or more complicated leasing transactions usually only take an extra day or two.

How much information do I have to provide?
Most transactions are approved with a simple five-minute credit application. If your transaction requires more information, we’ll contact you. We know your time is valuable and guarantee that the paperwork will be minimal.

What kind of terms can I expect?
The average transaction is written for five years. However, terms are available from one to eight years.

What kind of equipment can I finance?
All types of manufacturing equipment including machine tools, fabricating equipment, plastics processing equipment and coordinate measuring machines.

What size transactions can I finance?
$7,000 - $10,000,000.

Can I finance used equipment?
Yes. As a general rule we’ll finance used equipment that is less than ten years old.

Leasing

• Great rates! We work with providers of financing industrial equipment. Because they specialize, they can provide better rates and terms than most banks and 'generalist' finance companies. You'll deal with a specialist who understands the equipment and the unique needs of manufacturing companies. They are a direct lender so you'll work directly with decision makers who give you quick answers and immediate service.
   
• Let the equipment pay for itself and use our money to make money. Programs are available that provide 100% financing and no payments for up to 6 months allowing profits to ramp up before impacting your cash flow. Include freight, tooling and accessories in the financing as well.
   
• Fixed Rates with Flexible terms from 3 - 7 years
   
• Specialized Lending – deal with someone who understands manufacturing companies and avoid time-consuming complicated bank loans. Leave your bank line of credit available for other needs.
   
• Tax savings - $1.00 buy out leases qualify for the section 179  - $105,000 write off. Tax savings can sometimes cover the entire 1st year’s payments. (more about tax incentives)
   
• Hedge against inflation – in an inflationary environment equipment values continue to rise.
   
• Fast approvals – In most cases, They'll approve you with a simple five-minute credit application. Get answers in hours not days!
   
• Super simple paperwork – Simple one-page agreements. Financing your equipment doesn’t have to be time-consuming and complicated. 
   
• Equity investment — Monthly payments are lower than subcontracting costs. At the end of the lease, you own the equipment for $1.00 or the specified amount.
   
• Flexibility. There are a variety of leasing programs available to fit your needs
   
• Leasing can increase equipment options – Take advantage of lower monthly payments and get the equipment that will maximize your productivity and profits.
   

There are two principal types of leases:

• Low monthly payments.
   
• Tax benefits: Many customers qualify for a $105,000 write off under Section 179 of the IRS Tax Code plus depreciation and interest expense. Always check with your accountant to verify how these tax benefits will affect your company.
   
• Leaves your bank line of credit available for other uses.
   
• Low down payments — Preserves your working capital because leasing requires no down payment and provides 100 percent financing, including ancillary costs, such as shipping and installation. Operating capital is saved for revenue-generating investments.
   
• Equity investment — At the end of the lease, you own the equipment for $1.00 or the specified amount.
   
• Longer terms with fixed rates — Bank loans typically use floating rates and these can be called in anytime during the loan. Leases offer fixed payments through the entire term and are not callable on demand or subject to annual renewals.
   
• Simplified paperwork.
   
• Flexibility. There are a variety of leasing products available, allowing the lessee to customize a program to address needs and requirements -- cash flow, budget, transaction structure, cyclical fluctuations, etc.
   

• Low monthly payments.
   
• Tax benefits: Payments can be written off as an operating expense for tax and accounting purposes.
   
• Off balance sheet treatment possible.
   
• Minimizes risk of ownership.
  
  End of term options include:
   
• Purchase of the equipment for stated purchase option
   
• Renewal of the lease
   
• Return of the equipment
   

As with finance leases, operating leases also offer low down payments, longer terms with fixed rates and the paperwork is minimal. They are also flexible and allow you to use available credit lines for other areas of your business.

New 2007 Tax Incentives!

Tax laws for manufacturing companies

For as little as 4% of your equipment cost, you can save thousands of dollars on your taxes.
First year's tax savings could exceed first year's machine payments! Equipment leases that include a $1.00 purchase option qualify for the federal Section 179 deduction and regular depreciation. Companies may also be eligible for additional state and local tax deductions plus interest deductions. Companies purchasing equipment now could see their tax savings cover their first year's payments!
 

Always check with your accountant or financial advisor to verify tax or accounting issues and any tax benefits.

$108,000 write-off
Section 179 Federal Income Tax Deduction: This deduction allows a company to deduct the first $108,000 of equipment (Section 179 Property) purchased in 2006 from their taxable income. For companies purchasing (or leasing - with a $1.00 buy-out lease) up to $430,000 of equipment in 2006, this deduction is available in full. It then phases out on a dollar-for-dollar basis between $430,000 and $538,000 and it is not available for companies purchasing over $538,000 of equipment in 2006. However, companies can finance purchases over $430,000 with an operating lease and may still be able to claim this deduction.

Standard Depreciation
Additionally, companies can take their standard depreciation deductions on the adjusted basis of qualified equipment. Machine tools and fabricating equipment are typically depreciated over 7 years.