Equipment Leasing and Factoring
Equipment Leasing
We Specialize in C/D credit lines but can do A/B credit so bad credit and bankruptcy O.K.!
Conservation of Capital
If your money is not tied up in equipment costs, you're free to spend it on other items such as inventory, advertising, research & personnel.
Fixed Payments
Lock in payments – facilitate financial planning with stable payment structure.
100% Financing
Eliminate the need for a down payment – use the cash elsewhere in your company for expansion.
No Application Fees
Absolutely no application fees! Approvals in 24-48 hours with funding in 7-10 days
Enjoy Flexibility
Longer terms, lower payments structured to fit your budget. Leasing is the least restrictive form of financing today.
Obsolescence Protections
Avoid the risk of owning equipment that is no longer technologically useful or valuable – let the lessor assume the risk.
Tax Savings
Payments on qualifying leases are written off as direct operating expenses, reducing current taxable income. Avoid negative impact of the alternative minimum tax or mid-quarter depreciation penalties.
Use Of Equipment
Cost-cutting profit-making equipment installed immediately. Access to the equipment you need. When you need it, in order for your business to grow and prosper. Pay as you use!
Enhanced Cash Flow
You pay only for the use of the asset, not its ownership. This makes for easier cash flow forecasting.
100% Cost Coverage
All "soft" costs including insurance, maintenance taxes, training and installation shipping and software-right in the lease.
Credit Diversification
Your bank lines are not burdened. Gives you leverage – leaving normal lines of bank credit undisturbed. Avoid restricting your ability to respond to opportunities and emergencies.
Purchase/Renewal Options
At the end of your lease, you choose to purchase your equipment, upgrade to new equipment or continue to lease at substantial savings.
Off-Balance Sheet Source of Funds
Experience more liberal credit criteria as there is no disturbance of your current debt ratio. Improve ROE/ROA and other ratios so that you may improve your ability to acquire funds.
Avoid Capital Budgeting Constraints
Acquire needed equipment outside capital budget. Lease payments are usually paid out of operating budget. Therefore, creates or maintains working capital for putting cash into things that make a direct profit, such as inventory, A/R and other faster producing assets.
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Factoring
Factoring is a word often misused synonymously with accounts receivable financing. Factoring is a financial transaction whereby a business sells its accounts receivable (i.e., invoices) at a discount. Factoring differs from a bank loan in three main ways. First, the emphasis is on the value of the receivables, not the firm’s credit worthiness. Secondly, factoring is not a loan – it is the purchase of an asset (the receivable). Finally, a bank loan involves two parties whereas factoring involves three.
In Europe the term Factoring typically mean accounts receivable financing. Here the correct word for this article is: American factoring.
The three parties directly involved are: the seller, debtor, and the factor. The seller is owed money (usually for work performed or goods sold) by the second party, the debtor. The seller then sells one or more of its invoices at a discount to the third party, the specialized financial organization (aka the factor) to obtain cash. The debtor then directly pays the factor the full value of the invoice.