Franchise Remodel Equipment Leasing & Funding

Benefits of Leasing

Banks and other financing sources tend to move slowly, drawing out the process of application, review
… and, finally, you receive your equipment.

According to the U.S. Small Business Administration:

  • 85% of all U.S. companies use leasing as a source of acquisition for some or all of their equipment.
  • 89% of those companies will lease equipment again in the future.
  • 80% of all companies that lease find leasing is their average-to-best means for equipment purchases

Leasing's Top Ten

  • Convenience
    Simpler, more flexible documentation. 100% financing. Think leasing to your company should be a no-brainer? Can’t understand how decisions can take so long? They don’t have to.
  • Stay on the edge, avoid obsolescence
    Buying promotes keeping equipment far beyond its useful life. Out-dated equipment is often shuttled downstream or stored away until it is worthless.
    Leasing’s built-in termination date, the lease term, can be synchronized with equipment’s productive life.
  • Work with someone who understands your business
    Leasing companies that specialize in your industry can provide valuable financial input and structure transactions that fit your specific requirements.
  • Pay as the cash flows
    Is your business seasonal, your business cycle predictable? Why not pay for that new equipment when it is paying for itself. Leasing is flexible. Customized lease payment schedules to fit your cash flow.
  • Fixed rate lease payments
    Your lease payments are fixed for the life of the lease contract. Fixed payments enable you to more accurately predict equipment costs and cash needs.
  • Capital Conservation
    If it appreciates, buy it. If it depreciates, lease it. 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. Don’t invest in depreciation.
  • Overcome budget limitations
    Your budget allows the purchase of only what you absolutely require … not what your really want and need? Ask how leasing can stretch budgeted dollars to acquire the quality and quantity you really need.
  • Conserve credit lines
    Leasing does not weaken your borrowing power. Lease and your existing credit line stays healthy and available for the unforeseen.
  • Tax benefits
    Lease rental payments are made from pre-tax rather than after-tax earnings. Lease payments may be fully deductible, consult your accountant.
  • Competitive advantage
    How can leasing help grow your business? Call us!

Types of Leases

  • Fair Market Value(FMV)

    This program is often chosen by those who:

    o      Are interested in tax and accounting benefits that come with off-balance-sheet payments which are considered an operating expense.

    o      Wish to simplify asset management and reduce TCO (total cost of ownership), syncing the lease term with the technology cycle.

    o      Use a FMV lease’s lower monthly payments to stretch budgeted dollars.

    o      At lease’s end the equipment can be purchased for its then Fair Market Value.

    $1 Buy Out

    The $1 Buyout option is intended for customers who intend to own the equipment at lease’s end. Leasing can positively effect a company’s bottom line with such benefits as enhanced earnings, improved tax treatment and increased cash flow while accessing the best available equipment on the market. Leasing can help companies obtain the equipment they need today, without drawing down lines of credit or capital reserves. And with leasing, companies pay for the equipment as it is being used, so the equipment pays for itself. Equipment leasing is a proven, valuable financial tool used to optimize the growth and profitability of today’s business.

     

    Term Residual Lease(TRL)

     **The Term Residual Lease (TRL) acts as an option to either purchase or return the equipment at the completion of the Original Lease Term.  Compared to a standard FMV Lease of 12, 24, 36, 48, or 60 months, the term on a TRL is shortened to 21, 31, 42, or 52 monthly payments. The Lessee can return the equipment after the Original Lease Term or they can choose to purchase the equipment by making 3 additional monthly payments on a 21 month term (24 payments to own), 5 on a 31 month term (36 to own), 6 on a 42 month term (48 payments to own), or 8 on a 52 month term (60 payments to own.)  The Residual payments are made monthly. 

    *Certain state have restrictions on leasing programs  – Ask your equipment leasing consultant.

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FranchiseLeasing.com, in affiliation with Diamond Financial in New Jersey, offers the best in securing the financing you want for all your franchise equipment needs

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