One of the biggest mistakes businesses make is using their own money to purchase the equipment they need to run their businesses. What they fail to realize is that their are other options available to them which allows them to conserve their cash flow, which can be used in other aspects of their businesses. Equipment financing is a cheaper and a more flexible way to obtain your necessary business equipment. Prestige Capital Solutions helps businesses get connected with the right equipment lenders with the cheapest rates and with the least stringent lending requirements, This allows you to utilize your business capital for the other important day to day operations of your business. There are primarily 2 financing options for obtaining business equipment. Equipment Financing (Equipment Loans) and Equipment Leases.
What is Equipment Financing?
Equipment Financing is designed for the outright purchase of the business equipment. You put down a down payment and make payments over time and when the debt id fully repaid you own the equipment free and clear. With this type of financing you will usually have to personally guarantee the loan but sometimes the equipment itself can be use a collateral for the loan.
PROS OF EQUIPMENT FINANCING
- quick application process
- depreciation tax benefits
- can modify the equipment to meet your needs
- when you are done using it you can sell it to another business
CONS OF EQUIPMENT FINANCING
- large down payment
- threat of equipment obsolescence
- need high credit score
- takes away capital that can be used for working capital
WHAT IS EQUIPMENT LEASING?
A Equipment Lase is a legal agreement whereby a lessee uses the lessors personal property fora specified time and for a specified rental charge. Leasing allows a business to finance the usage of equipment without having to finance the purchase of the equipment.
PROS OF EQUIPMENT LEASING
- No large down payment
- less stringent lending requirements
- avoid equipment obsolescence- can turn in the equipment and obtain new equipment at end of the term
- reserves cash for the other day to day operating expenses
- speed- Lessors are able to offer lessees a leasing program in hours instead of days, so that they can utilize the equipment right away
- affordability- other incidental costs such as installation, delivery costs and other soft costs can be included in the lease payment
- IIRS tax benefits
CONS OF EQUIPMENT LEASING
- may have maintenance and repair costs
- costs for returning the equipment
WHY USE PRESTIGE CAPITAL SOLUTIONS?
Prestige Capital Solutions through our business relationships can provide you with the right options, rates and terms for all of your business equipment needs.
Do not worry if you do not have the greatest credit, as we have the programs and providers that can tailor for you the right and most flexible business equipment options available in the current equipment loan industry.