Equipment Lease Financing Options

What you need to know when your business needs equipment but you don t have the cash to buy it outright you have two options.

Equipment lease financing options. In simple terms equipment leasing has some similarities to an equipment loan however it s the lender that buys the equipment and then leases rents it back to you for a flat monthly fee. Equipment financing transactions are provided in canada by wells fargo equipment finance company. Financing for large and compact tractors sprayers combines tillage equipment utility vehicles and more. Do you want the option of ownership included in your lease.

The equipment lease agreement with option to purchase is useful to those who cannot qualify for a loan from the bank due to credit issues. Hard assets such as plant machinery and soft assets like office equipment and what you decide to do at the end of the lease agreement. You also benefit from lower payments than you would encounter with a short term rental as well as 100 percent financing for qualified customers frequent special promotional rates and a variety of other options than further reduce payments. Capital lease finance lease 1 buyout.

If you are unable to purchase the equipment at the end of the lease period then you can request the equipment leasing company to either extend or renew the lease or return the equipment. Some restrictions may apply. Wells fargo equipment finance is the trade name for certain equipment leasing and finance businesses of wells fargo bank n a. A key advantage of business equipment leasing is that it permits 100 financing and the term of the lease can be matched with the useful life of the equipment.

May also be referred to as a nominal or 1 dollar buyout lease. Get lease and loan options for all the equipment you need to keep your farm running acreage maintained and animals comfortable. Money equipment leasing vs. These leases share the advantage of fixed monthly payments but with the guaranteed option to purchase the equipment for a nominal price at the conclusion of the lease.

It can depend on the equipment being loaned out e g. A purchase isn t the only alternative to leasing. Lenders usually specialise in different forms of leasing such as finance leasing lease rental contract hire and operating leases and they re all slightly different. Therefore if cash flow is a problem leasing can help your company avoid down payments and keep scheduled payments low by stretching out payment terms.

Most equipment leases come at a fixed interest rate and fixed term to keep those payments the same every month.