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Equipment
Leasing and Financing:
Businesses are always acquiring new
and used equipment to help them in the manufacture and
distribution of their product or service. The choices for the
owner of a business in an equipment acquisition are as follows:
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Pay cash or
write a check.
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Finance
equipment at the bank. ( Bank will usually only finance up
to 80% of equipment cost and require other collateral as
well as spouse guarantee.)
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Finance with an
equipment leasing company.
Equipment can be
financed for up to five or seven years and in some cases, up to
ten years depending on the age and the useful life of the
equipment. Most new equipment can be financed for 100% of the
cost including shipping and installation. Purchase options at
the end of the finance (or lease ) period can be from $1.00 to
10% of the original cost or some agreed upon price. The pay
back of the loan can also include a balloon payment at the end
in order to reduce the monthly payments.
Typical equipment to
finance or lease:
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