Equipment and Vehicle Lease Financing

Sharp MX-M623N

admin — Wed, 22 Feb 2012 21:24:13 +0000

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:

Print, Copy, Scan, Fax, File
Pages per minute: 62 B/W
Paper capacity: Std 3100 Max 6600 sheets
True 1200 x 1200 dpi print resolution

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.

Lease Accounting Standards Will Cost, Big-Time

admin — Mon, 20 Feb 2012 18:22:46 +0000

According to GlobeSt.com, the Financial Accounting Standards Board and the International Accounting Standards Board are moving closer, albeit slowly and with re-exposed drafts along the way, to their goal of new converged accounting standards for leases. Although the two accounting-standards setters have re-exposed a draft, thus pushing the day of reckoning off, there is little doubt that it is coming.

Essentially, the standards will require tenants to place leases on their balance sheets—an enormous line item that consists of anything from office, business and farm machinery to, yes, real estate.

The costs to businesses are expected to be enormous. The Equipment Leasing and Finance Association, which has been tracking the issue, notes that leases account for hundreds of billions of dollars in transactions annually throughout the global economy.

IT Equipment Leasing is on the rise

admin — Fri, 10 Feb 2012 22:35:23 +0000

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

Compliant Data Destruction and Proper Disposal Of IT Equipment

admin — Fri, 03 Feb 2012 18:18:01 +0000

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

Businesses Spend More on Equipment as Economy Improves

admin — Fri, 27 Jan 2012 19:31:56 +0000

Madison Capital

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

The Top 10 Leasing Trends for 2012

admin — Mon, 09 Jan 2012 20:41:43 +0000

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.”

Medical equipment leasing changes

admin — Tue, 03 Jan 2012 20:35:22 +0000

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.

Commercial Vehicle Leasing Transactions

admin — Thu, 22 Dec 2011 21:34:18 +0000

November was a good month for commercial vehicle lease financing transactions. We refinanced 22 recently purchased heavy duty pick-up trucks for a Texas oil refinery services company. We also financed 18 new vehicles for a share ride company for $240,000 and 9 new vehicles for a drivers education school for $125,000.

A lot of businesses are upgrading their vehicles due to the new 2012 models that are out. Being a smaller firm allowed us to be creative and flexible in helping clients with their financing needs. There is substantial pent up demand and we expect 2012 to be our best year yet

Leasing Medical Equipment

admin — Fri, 09 Dec 2011 13:14:24 +0000

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.

The B.I.G. Award- Madison Capital Equipment & Vehicle Leasing

admin — Thu, 27 Oct 2011 20:57:36 +0000

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.

Small businesses such as Madison Capital Equipment & Vehicle Leasing are encouraged to submit a video to The B.I.G. AWARD on how we treat our customers. The theme of the contest is the ultimate customer experience. I decided to take a light approach by using our family pet pug Lucy. In the video Lucy is the owner of a dog boutique and explains how her business has grown since engaging with Madison Capital’s equipment and vehicle lease financing services.

Lucy enjoyed making the video as she received around 30 carrots and small dog treats for cooperating. I think Lucy did a great job! You can vote for us here www.orlando.org . Check it out yourself below.