Equipment Leasing:
Obtaining the Best Rate
Jan 28, 2011 by admin.
Allan Levine
Chief Operating Officer
Every business wants to have a competitive lease rate. Factors that affect your lease rate include:
- Credit quality
- Size of the transaction
- Asset quality, category, and remarket ability
- How long the business has been established
- Financial health of the business
Some equipment leasing firms have different asset preferences, some prefer small leases, some only do multi-million dollar leases, with their own funding and capital structures which dictate pricing and terms. We tell clients, as a general rule, they should expect the best pricing when they are established businesses, are profitable, and have positive cash flows with clean balance sheets and income statements.
Speak to a trusted and experienced lease financing advisor. One who will guide you through the leasing process; discuss different options that are available, the economic advantages you can hope to achieve, and how to do a true benefits assessment for lease financing.
Equipment Lease Financing:
Choosing The Right Lease Type
Jan 17, 2011 by admin.
Nancy Pistorio, CLP
Executive Vice President
When acquiring new or replacement assets for your company, leasing can be a great resource for preserving cash flow. Compared with a bank loan or paying cash, lease financing offers more flexibility and options.
You want to carefully consider the type of lease that best suits your needs. This can be achieved by asking yourself one key question: Is your focus on owning the asset or using the asset?
If you want to focus on using the asset, and it has a long economic life, then look at what is known as an operating lease. This gives you maximum flexibility, and usually has the best cash flow analysis because the lessor retains ownership of the equipment. At the end of the lease, your options can include: returning the asset, buying it for an agreed upon fair market value, or simply extending the lease.
If you know you definitely want to own the asset at lease end, consider a $1 buyout lease. Dollar buyout leases are essentially the same as “full pay-out” loans. You will own the asset at the end of the original term.
