Type of Loans
Equipment Leasing
CIP works with many leasing companies nationwide so we can help you determine if leasing your equipment is right for your business. Many business owners realize that they do not need to own their equipment in order to conduct business — they only need to use it. We can usually get the equipment you need with just a simple one-page credit application. In many cases we can have the new equipment on site promptly.
The potential benefits of leasing include:
- Initial cost
The first thing you need to know about equipment leasing is that it is 100% financing. Because a lease is essentially a "rental" of equipment, there is usually no down payment required to access the equipment your business needs. This gives you the opportunity to put your own working capital back into your business.
- Equipment obsolescence
Leasing your equipment helps to avoid obsolescence by allowing you to upgrade every few years. In other words, if the equipment appreciates, buy it. If the equipment depreciates, lease it.
- Tax benefit
A lease is typically structured as a rental with the business paying only for the usage and not the ownership of the equipment, thus the business can usually write off all of the monthly lease payments just like any other legitimate business expense. You should always consult with your tax advisor.
- Off-balance sheet financing
Leasing allows you to not present the equipment on your balance sheet. The equipment is being rented and therefore actually belongs to the lender. For this reason leases are often referred to as "off balance sheet" financing and this can be a tremendous advantage to many businesses both large and small.