Corp. Only Loans
If your company is a corporation and meets certain criteria you can be approved for a lease without a Personal Guaranty. Very popular loan with existing corporations that want to separate personal and business expense.
A capital lease is ideal when long-term ownership of the asset is the goal. Lessee makes 24-60 monthly payments and then has the option to purchase the asset at the end for $1.00 to 10% of the original equipment cost. Capital leases, like bank loans, are evident on the lessee’s balance sheet. Capital leases take advantage of IRS Section 179 allowing businesses to write off up to $500,000 of equipment in the year it is purchased.
An operating lease is ideal when use, not ownership, of the equipment is important. Operating leases are off-balance-sheet transactions. Cash flow is typically enhanced through lower monthly lease payments. Operating leases typically have fair-market-value buyouts in which ownership is negotiated at the end of the lease. You are able to write off 100% of each monthly lease payment.
Equipment Finance Agreement
An EFA is a fixed-term obligation with equal monthly payments, where the borrower is the owner of the equipment and the lender has a security interest in the equipment. The borrower deducts as a business expense both the depreciation on the equipment and the interest portion of the monthly payment.
Monthly Payments are based on approved credit. Please Call for Quotes!