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Archive for the Equipment Leasing CategorySharp MX-M623NFeb 22, 2012 by admin.
We recently received a Sharp MX-M623N Network Copier off lease. It is only 1 year old and is in excellent condition. It originally sold for $31,000.00. Key features include:
Scan speed of 75 originals per minute in B/W and color We are willing to sacrifice it for $9,999.00. Please call 800-733-5529 or e-mail us at customerservice@madisoncapital.com for more information.
Posted in Equipment Leasing | No Comments » IT Equipment Leasing is on the riseFeb 10, 2012 by admin.
We are starting to receive a lot of requests from businesses who want to upgrade their IT equipment. New data center servers, iPADS, laptops, and networking gear. They simply need to be more productive. Lease financing makes a lot of sense when acquiring technology. One thing you can count on when it comes to IT equipment is change. There is always a faster, better, piece of technology coming down the pike and you don’t want to be stuck with a “clunker” so to speak.
By utilizing lease financing you can minimize your risk of technological obsolescence or Moores Law, which states every 18 months or so there are new computer chips available. Lease financing allows you to acquire the latest IT equipment with no money down and the ability make a flat payment for 24 or 36 months, at the end of which time you could swap the equipment out for the latest and greatest. We handle the coordination of acquiring the new equipment and the disposal, which requires a lot of due dilligence . Be sure to check out our video: IT Equipment Leasing Posted in Equipment Leasing | No Comments » Compliant Data Destruction and Proper Disposal Of IT EquipmentFeb 03, 2012 by admin.
The following article may have ramifications for IT Equipment Leasing By Jim Noyes, Lifespan Technology Recycling “Is the risk of improper disposal becoming the key driver in asset disposition in today’s regulated environment?” Mid-sized companies to Fortune 500 companies are being fined by federal and/or state agencies for thousands to millions of dollars for improper disposal of electronic equipment. Television exposes have shown used PC’s and monitors being burned in open pits in third world countries. We’ve seen this playing out a lot in the last few years and it’s going to play out a lot more in 2012 and beyond. Data integrity and data destruction go hand-in-hand. Whether you’re a lessor who has possession of returned IT equipment or you’re a company with owned IT equipment, the laws regulating how you dispose of that gear are becoming increasingly stringent. Do you know all of the laws and regulations? More importantly, does your recycling/remarketing partner know them all? How safe do you feel about every piece of equipment that you send to your partner(s)? What certification do they hold and what processes do they follow? Do you audit them for compliance? read more… www.worldleasingnews.com/blogs/compliant-data-destruction-and-proper-disposal-of-it-equipment
Posted in Equipment Leasing | No Comments » Businesses Spend More on Equipment as Economy ImprovesJan 27, 2012 by admin.
The economy likely expanded at an annual rate of 3% in the fourth quarter, according to FactSet. The Commerce Department is releasing the official result today. A 3% gain would be a modest improvement from the third quarter, when the economy grew 1.8%. In December, companies spent more on equipment and machinery, and the unemployment rate fell to 8.5%. TheStreet.com/The Associated Press Posted in Equipment Leasing | No Comments » The Top 10 Leasing Trends for 2012Jan 09, 2012 by admin.
The Equipment Leasing and Finance Association (ELFA) revealed its Top Ten Equipment Acquisition Trends for 2012. Growth, uncertainty and numerous benefits underlie many of the trends that businesses acquiring equipment this year can expect. Every year U.S. businesses, nonprofits and government agencies spend in excess of $1.2 trillion in capital goods or fixed business investment (including software), financing more than half of those assets, these trends impact a significant portion of the U.S. economy. 1. New equipment acquisition will gradually, but steadily improve. The equipment finance industry is forecasting nine percent growth in investment in equipment and software for 2012, indicating that equipment acquisition by businesses in many industry sectors will increase this year. 2. Replacement needs will continue to drive new equipment acquisitions. Aging of equipment and replacement needs will be the main drivers of new equipment acquisition, as businesses await stronger signs of economic improvement before expanding their equipment investment. 3. Uncertainty over proposed changes to lease accounting might have businesses playing a waiting game. The resolution of proposed changes to lease accounting standards by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) later this year will have businesses waiting to find out how their balance sheets, earnings and other financials will be affected. Meanwhile, industry advocacy will continue to mitigate the negative impacts of lease accounting changes on U.S. businesses and the economy. The good news is that the primary reasons to lease equipment will remain intact, from maintaining cash flow, to preserving capital, to obtaining flexible financial solutions, to avoiding obsolescence. 4. Used equipment prices will rebound in many market segments. The collateral value of many categories of equipment that ‘bottomed out’ over the last few years will rebound in 2012. Car and truck values will be particularly strong, and construction equipment also will hold its value. 5. Equipment finance companies will enhance customer relationship and support capabilities to build competitive advantages. They’ll be providing specialized areas of expertise and value-added customer services that will be a win-win for both lessors and lessees. 6. Credit availability will enable equipment acquisition for eligible businesses. Last year credit approvals for the equipment finance industry remained above 75 percent. In 2012, businesses seeking financing for equipment acquisitions will often find credit approvals higher in the equipment finance industry than from bank loans. 7. Organizations seeking ways to cut costs and increase operational efficiencies will look to technology innovations. The flexibility, scalability and relative costs associated with cloud computing and shared services will begin to compete with new IT equipment purchases for many businesses. 8. The continuation of a limited bonus depreciation will allow businesses to plan for equipment upgrades or expansions. The continuation of the depreciation bonus will allow businesses to write off 50 percent of the cost on new equipment purchases in 2012. 9. Global financial pressures will continue to add uncertainty to U.S. investment in equipment. The fallout from the euro-zone crisis and other international financial instability will be a wild card in how much U.S. capital investment picks up this year. 10. Individual equipment markets will see steady growth slightly below 2011 rates. Investment in agriculture, computer and software, industrial, medical and transportation equipment will be positive, but may not match 2011 growth rates. ELFA president and CEO William G. Sutton said, “Equipment acquisition has played a critical role in driving the supply chains across all U.S. manufacturing and service sectors. We have distilled recent research data, including the Equipment Leasing & Finance Foundation’s 2012 Equipment Leasing & Finance U.S. Economic Outlook Report, comments and articles from industry experts, and member discussions at our meetings and conferences into our best insight for the top 10 Equipment Acquisition Trends for 2012.”
Posted in Equipment Leasing | No Comments » Medical equipment leasing changesJan 03, 2012 by admin.
The proposed lease accounting rules by FASB/IASB should not have a significant impact on healthcare industry lessees. Most of the lease transactions are generally for high-tech equipment such as CT scanners and MRIs with good residuals and favorable tax benefits so the resent values (capitalized amounts) are significantly less than cost. For doctor and dentist equipment lease financings the liberal tax write offs under section 179 favors CSA or dollar out transactions. Hospitals tend to use FMV leases to acquire equipment and capitalized amounts should be low enough to keep lease offerings in demand. The traditional reasons for leasing (raising capital, low financing cost, fixed rates, level payments, tax benefits, managing equipment life cycles, transfer of residual risk, convenience ) will continue to exist. The off-balance sheet accounting reason for leasing will be released but not eliminated as long as the amount capitalized is less than the cost of the equipment. Dollar out leases will be treated the same as under current GAAP capital lease accounting- the lease will be capitalized at 100% of the asset’s price. Posted in Equipment Leasing | No Comments » Leasing Medical EquipmentDec 09, 2011 by admin.
If you are planning to purchase medical equipment for your practice or hospital you may want to consider some of the advantages of leasing medical equipment. There are good reasons why 8 out of 10 U.S. businesses lease some or all of the equipment needed to run their operations. Most medical equipment needs to be replaced in 3 to 5 years. By leasing medical equipment you can avoid technological obsolescence. If you structure the lease term to the useful life of the equipment, you can match your payment obligations to the period the equipment will generate revenues versus paying for the equipment upfront and mismatching the lump sum payment for the equipment with the revenue stream produced by the equipment. This will help you protect against the rate of high technology medical equipment depreciation. There are also potential tax savings depending on the lease structure chosen. In an operating lease, the payment may be expensed rather than capitalized and depreciated like you would have with a traditional loan. The lease payments, unlike the loan payments can be expensed in the period they are paid as a general operating cost. This may result in a lower after -tax cost for the credit, which results in a lower tax liability when compared with depreciating the equipment cost and expensing the interest portion of the loan payment. Of course always check with your accountant or tax advisor. Remember to match your lease term with your warranty coverage. For example, if you are purchasing a new MRI scanner and it includes 36 months of warranty coverage you can purchase the additional 12 months of coverage and roll it into the lease. This way you have control over your expenses for the use of the asset thoughout the lease term. Posted in Equipment Leasing | No Comments » The B.I.G. Award- Madison Capital Equipment & Vehicle LeasingOct 27, 2011 by admin.
Mark J. Caulfield, Marketing Director
Recently I had the opportunity to make a video for the Orlando Chamber’s B.I.G. Summit. The B.I.G.* Summit is Orlando’s premiere event for Business Innovation and Growth and attracts entrepreneurs and business leaders from the Central Florida region for a powerful day of learning, idea sharing and forging new business relationships.
Posted in Equipment Leasing | No Comments » Funding for Small and Medium-sized Businesses in Today’s Environment: An Independent Lessor/Funder’s PerspectiveSep 01, 2011 by admin.
Nancy Pistorio, Executive Vice President The economic challenges over the past three years have been so drastic that historic business models, regardless of industry, have changed dramatically. Not long ago it was the order of business for many leasing companies operating in the small ticket arena and lending to private firms, to simply credit score everything with most of the emphasis placed on the personal credit scores of the businesses’ owners. This formula appeared to allow for high volume and efficiency while keeping default rates at acceptable levels within a funder’s portfolio. For leasing firms willing to take more risk, it was not unusual to further secure some transactions with a lien on the business owner’s personal real estate. In the recent economic downturn, neither of these avenues of extending credit has held up well. As a matter of fact, for some, the traditional approach used to extend credit turned out to be a recipe for disaster As delinquency and default rates soared, portfolios were in shambles and additional collateral positions were essentially worthless. In addition, the economic slowdown exposed many large, pyramid-type fraud schemes which had gone undetected for years. A large number of leasing firms were put out of business. For the leasing firms and banks who survived, many were forced to scale back dramatically or exit the small ticket leasing arena altogether. As confidence in the economy has gradually begun to return and delinquency rates have subsided, lenders are anxious to replenish their portfolios but seemingly only with “A” quality credits. This has posed extreme challenges to small and medium-sized businesses seeking financing to start, continue, or even grow operations. Unless they are long established with excellent credit, many traditional avenues of financing are still not available to them. For the lenders, the market of “A” credits buying new or replacement equipment is sharply down causing a lack of volume for those trying to rebuild portfolios. The oldest and strongest business borrowers are still proceeding cautiously when it comes to acquiring new equipment or vehicles. This lack of volume is having the effect of driving rates down to extreme lows. One might argue, while it is good for those businesses who qualify, it is unrealistic “pricing versus risk” for the lenders and likely not prudent in the long run. Where does this leave us? With bumpy news on the economic front including continued poor housing and unemployment numbers, things remain sluggish on the demand side for many lenders and, with the lack of real estate equity and other personal assets, there is still not enough available credit for the less-than-perfect borrower. Many small and medium-sized businesses today find their bank borrowing capacity has been reduced or quickly “maxed-out.” With greatly reduced or negative home equity positions, lines of credit and credit cards are not the financing option they once were for smaller businesses either. Some have turned to private lenders, but at a high cost. Rates can be as expensive as twenty to thirty percent or more. This is often a last resort for a business and generally not appealing. For the independent lessor competing for volume in the small ticket space, today’s circumstances can provide solid and profitable business opportunities if approached in a practical manner. Things to consider in one’s business model would include the following: Adjusting scoring models with certain parameters that will call for an actual analyst’s review, rather than produce an automatic decline, can result in additional approvals. Once the full picture is adequately analyzed, the transaction may pose an acceptable “risk versus reward” for the lessor. Approaching vendors previously thought to be out of reach for the smaller independent can produce unexpected positive results. Vendors are now more receptive to working with more than just the traditional high-volume “program” lessors. Today’s vendors, also suffering from lower demand for their products, require funding for a wide array of credit quality customers. With fewer sales, each approval or decline is more meaningful. They need lenders who will find creative ways to approve more transactions. The cheapest price is not necessarily today’s top consideration in driving a vendor’s choice of a financing partner. A willingness to finance unconventional, but necessary, business equipment can uncover new opportunities for growth with solid firms. Examples include school buses to private transportation companies, taxi cab medallions, and helicopters that provide weather and traffic updates in major metropolitan areas. With a bit of creative thinking, there is no limit to the types of business “equipment” or vehicles that may suit a company’s lending parameters and appetite. Ramping up marketing and networking activities is also critical in this environment. While they were in a fight for survival mode, many leasing and financing firms had scaled back these activities. Businesses may not realize the independent lessor is still out there. Letting the business community know you are actively engaged in lending and looking for additional business is crucial. A return to some prudent structuring enhancements can also improve a lessor’s position in a transaction potentially leading to an approval that, at first look, might have been a decline. Enhancements such as placing liens on paid-off corporate vehicles, a pledge of the cash surrender value of life insurance, or additional security deposits to be held for a period of time can all help to provide that little extra that may be needed in some circumstances. Equipment financing today is not a business for the faint of heart, those inexperienced in the industry, or not well-schooled in the art of credit analysis. The pool of competitors active in the small business lending market has diminished significantly. However, those independents remaining will prosper in this current climate by revamping business models, bolstering sales efforts, and redirecting business focus to new and previously overlooked areas of opportunity. Posted in Equipment Leasing | No Comments » Small Ticket, Big BenefitsAug 06, 2011 by admin.
Nancy Pistorio, EVP The Way In Back on the mainland after two years in Puerto Rico, I looked at a map and calculated which city, within a four-hour radius of my Pensylvania hometown, would allow my savings to last the longest, so I chose Baltimore. Twenty-five years later I am a principal and partner at Madison Capital. I started as an administrative assistant. My educational background was in business administration and my strengths are in finance, so I did much of the back office and operators work and I learned originations. Things just grew from there. Keys to Success I’m a firm believer in attendance, and showing up. I also believe in persistence, if I start something, I finish it. I was the first woman president of EAEL, a predecessor to the National Equipment Finance Association, and I have served ELFA, the Equipment and Leasing Finance Association, in several capacities. As independent lessors, we can adapt more quickly than most large operators. We help firms that don’t yet qualify for bank credit, but have potential. We limit exposure to half a million dollars per lessee on the equipment side, and go into the seven figure range for our commercial-vehicle fleet clients. Challenges Today’s largest small-ticket challenge is managing an appropriate level of risk while processing a high volume of small transactions with limited underwriting time and/or information. You can have the same parameters in two different transactions but miss some nuances if you rely completely on technology. So we try and balance it, relying on technology for speed, but keeping our own people involved so we can make exceptions or take a closer look wherever we think it’s necessary. A second challenge is pricing pressure from bank lenders and high-volume vender captives focused on rebuilding their lease portfolios. There is a lot of competition for the customers who are slowly returning to a capital equipment acquisition mode. To build volume, some competitors lower their pricing. Madison Capital remains committed to making prudent pricing decisions and maintaining an appropriate risk versus reward balance. Insights We try to provide fabulous customer service, and it really builds loyalty. Even if the pricing is slightly higher, there are many businesses that value a greater level of personal service and, for example, not having to deal with the frustrations of talking to customer service represenatatives in another country. In our vehicle-leasing division, we’ll even purchase cars for clients and get incentive money back from the manufacturers for them. We’re a boutique shop, small enough to provide a high level of service, but large enough to take care of all the details. Posted in Equipment Leasing | No Comments » |
