First Capital Business Finance
First Capital Business Finance commercial equipment leasing has unique advantages over other types of financing or purchasing with cash that can be vital to your business: The payment and terms of the equipment lease are fixed once the lease has been approved. You will know exactly what your payment will be each and every month to help you better plan your available cash flow and budget for the future. Commercial equipment leasing and financing are a breeze with First Capital.
Commercial equipment leasing and financing are financial arrangements that allow businesses to acquire necessary equipment and machinery without making a large upfront payment. These options provide businesses with the flexibility to access the tools and assets they need to operate and grow, while spreading the cost over time.
In a commercial equipment leasing agreement, a business essentially rents the equipment from a lessor (the leasing company) for a specified period. The business pays regular lease payments, usually monthly, in exchange for the right to use the equipment. At the end of the lease term, the business typically has the option to purchase the equipment, renew the lease, or return the equipment. Leasing is often preferred when businesses want to use the equipment for a specific project, have short-term needs, or prefer to avoid the responsibility of equipment ownership.
Equipment financing involves borrowing funds from a lender to purchase the equipment outright. The equipment itself serves as collateral for the loan, and the business repays the loan amount plus interest over a predetermined period. Unlike leasing, equipment financing results in ownership of the equipment at the end of the repayment term. This option is ideal for businesses that have a long-term need for the equipment and want to build equity in the assets over time.
Preservation of Cash Flow: Both leasing and financing allow businesses to conserve their working capital by spreading the cost of equipment over time, freeing up funds for other business needs.
Tax Benefits: Both options may offer tax advantages, such as deducting lease payments as operating expenses or depreciation and interest on financed equipment.
Flexible Terms: Leasing and financing agreements can be tailored to match the business’s budget and revenue cycles, offering flexibility in payment schedules.
Access to Up-to-Date Equipment: Leasing and financing enable businesses to stay competitive by accessing the latest equipment and technology without the need for significant upfront investment.
Asset Management: Leasing often includes maintenance and upgrade options, and financing allows businesses to fully own the equipment and potentially build equity.
Choosing between commercial equipment leasing and financing depends on factors such as the business’s financial situation, equipment needs, long-term goals, and preferences for ownership. It’s recommended to work closely with financial professionals to determine which option aligns best with the business’s specific circumstances.
This is a traditional lease agreement with lower monthly payments than a buyout. This type of lease will provide three options when the term of the equipment lease ends:
We are flexible to unforeseen needs so payments can be adjusted by extending or even shortening the term of the lease. Significant sales tax and installation fees can be added to the lease financing. In many cases, the total amount of each lease payment is tax-deductible*, and choosing a residual-based or fair market value lease transfers some of the risks of holding onto obsolete equipment. A commercial equipment lease through First Capital Business Finance can be much more beneficial than other types of commercial equipment financing or traditional bank loans. Consider the variety of leases that might best suit your business, listed below:
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Being a business owner, you need to make yourself familiar with all the benefits that may apply to you. We are not certified to offer tax advice. We always encourage our clients to consult with their CPA or accountant about the tax consequences when acquiring commercial equipment financing for their business. The IRS has made some amendments to Section 179. Be sure to speak with your CPA to see how this may help your business.
* Consult your tax advisor to make sure the type of equipment lease you are entering into allows for a tax
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These are just to name a few. If you don’t see your type of equipment listed, simply give our office a call. We offer financing on just about any type of equipment if it’s related to your business.
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