Equipment Financing

Contact Atlantic Edge Credit

To view different methods of contact for Atlantic Edge Credit simply click here.

>> Contact AEC

General Information About Equipment Financing

Equipment leasing is a financial tool used by over 80% of businesses to acquire pieces of capital equipment. The Equipment Leasing Association of America estimated that in 1999, over $226 billion in equipment was leased by US businesses. The flexibility and low out-of-pocket costs that equipment leasing affords are two major reasons so many businesses turn to equipment leasing as a means to acquire equipment. Two other reasons often cited include tax benefits and the ability to avoid technology obsolescence.

Leasing eases the strain on working capital by alloting 100% financing. This sort of financing indicates your clients will have additional funds available to invest in activities that are profit generating. This converts a large cash sale price into a low, affordable, tax-deductible monthly payment. Rather than tying up your line of credit or using cash operating funds, leasing provides an additional line of credit. Traditional bank lines are perfect for running the day-to-day operations of a business but not for funding long-term equipment acquisitions. Leasing provides an alternate source of credit and financing more suited for depreciating assets.

Unlike a bank loan, requires no down payment as it allows for 100% financing. Taxes, delivery, service contracts and other soft costs not typically financed by a bank can be included in the cost of the lease. One or two payments in advance are usually all that is required. Equipment leasing offers 100% financing and more liberal terms than purchase. The equipment pays for itself with the profits it generates. Leasing allows you to help your clients offset inflation with fixed lease payments. You will be able to help them acquire the necessary equipment at today's prices and pay for it with tomorrow's less valuable dollars. In addition, the monthly payment can also be tax deductible as an operating expense.

Sale & Lease Back

Most companies have a continuing need for working capital but do not want to use a lines of credit to acquire it. You can learn how to help your clients use the equity in their existing equipment to give them the working capital they need. You can think of it as helping your clients to refinance their own equipment. The lender buys the equipment and leases it back to your client and when all the payments are made your client owns the equipment again. This allows for the clients to acquire the working capital they need in exchange for low monthly payments to pay back the loan. Banks do not offer this type of financing putting you in an advantageous position to acquire and help your clients.

Benefits of Equipment Leasing

  1. 100% Financing- Equipment allows traditional "soft costs" such as installation, freight, training, and licensing to be included in the financed amount. This helps to further reduce initial out-of-pocket costs.
  2. Minimal Cash Outlay- Lets face it... cash is king! Equipment leasing allows you use of capital generating equipment, without the huge cash outlay associated with a cash purchase. Typically, only the first and last month's lease payments are taken in advanced. Compare this with the traditional 15% cash down, or compensating balances often required by banks to initiate loans and credit lines.
  3. Stay Current With Technology- In today's fast-paced business world, the ability to stay one-step ahead of the technology curve is a must! Equipment leasing allows for some of the most flexibly equipment financing terms available, allowing your business to upgrade equipment at set intervals down the road. Equipment leasing will allow your business to better manage cash-flow, while staying current with constantly changing technology
  4. Fixed Payments- Given the current economic environment, the luxury of having long-term fixed payments can give you and your business much needed peace of mind. Equipment leasing payments are fixed for the entire term and will not change with constantly fluctuating interest rates.
  5. Tax Benefits- Depending on your lease end-option, the possible tax benefits that equipment leasing affords can be immense. Qualified equipment lease payments can be expensed in their entirety, as they are made. Please consult your CPA or tax professional for more information on possible tax benefits for your unique business needs.

Our 5 Step Process to Obtaining Equipment Leasing Funds

  1. First, Our Equipment Leasing Consultants will discuss your needs and work with you to design an equipment leasing program that meets your requirements.
  2. Take a few minutes to complete an application online or fax back the printed version to us.
  3. Once we receive the application, we will update the bank and trade information. Our financial team will then review the application to help get the monthly payment that you desire.
  4. After the Initial application review We will send out the documents for the lease and a list of items that we will need from you in order to complete the lease transaction.
  5. Once we have the information completed, we will submit your final documents and release funds to the vendor or yourself!

Atlantic Edge Credit can help create a leasing or financing program that works for your business. If your are interested in obtaining an equipment lease or loan, please contact us at 1-866-285-6300 or complete our Contact Form.