Leasing has many advantages over financing, and there are many types of lease. The Banclease Acceptance team is experienced across the board.
Banclease Acceptance provides the most widely used financing programs at competitive rates. In addition, we custom craft financing solutions for our clients.
Learn more about leasing below.
When capital is conserved by leasing equipment, it can be put to more profitable company uses (increasing inventories, expanding sales, etc.). The average return on capital for business is 18% AFTER taxes.
A lease is not a loan. Borrowing reduces lines of credit. Leasing is thus a NEW credit source, which allows increased borrowing capacity.
Leases may sometimes be treated as off balance sheet debt which can enhance financial ratios & borrowing capacity.
Structured leases can allow upgrade and trade-up options insuring the latest technology.
Lease payments can sometimes be treated as a direct expense, which allows the equipment to be paid for with pre-tax dollars, whereas bank financing only allows expensing the interest costs & depreciation.
Leasing provides fixed rate financing with specifically structured terms to accommodate the needs of each and every company. These structured leases include step-up, step-down, deferred, and seasonal payment plans.
For those worried about obsolescence, this plan offers the most options both during and at the end of the lease In addition, this plan is particularly beneficial to those wanting to have both a small security deposit and a relatively low monthly payment. At the end of the lease term, the lessee has the option to extend the term of the lease, return the equipment, or buy it at its fair market value. Banclease Acceptance also offers financing for those wishing to buy the equipment at lease end. A True Lease allows the most cost to be deferred to the end of the lease, when a decision to retain or upgrade the equipment can be made.
For those who are fairly certain they wish to purchase the equipment at the end of the lease term, this is the recommended plan. At the end of the lease term, the equipment is simply purchased for $1.00. This plan is not available in all states.
Step leases allow lease payments to either increase (Step-up) or decrease (Step- down) over the term of the lease to better meet unique cash flow needs.
We’ve developed a plan especially for new businesses that helps young companies acquire equipment they need. Businesses that are just opening may qualify. Municipal Program: This program is designed to aid departments, agencies and institutions supported by a state, city, commonwealth, county, parish or other forms of recognized government in acquiring capital equipment. Master Lease: A master lease agreement allows for easy add-on schedules of equipment for the duration of the lease term. Payments are adjusted to meet the addition.
This plan offers the lessee a fixed purchase option at the end of the lease. At lease end, the customer can extend the term of the lease, return the equipment or buy it at 10% of the original equipment cost.
NTC will normally finance used equipment, which meets certain guidelines. An equipment condition report is normally required that describes the equipment condition and its age.
This program offers the lowest monthly payment, and may therefore be especially attractive to those who can afford a security deposit of 10% of the equipment price. End-of-Lease options still apply; the deposit can be applied to the purchase price of the equipment; the lease can be extended, or the equipment can be returned, and the deposit refunded.
This type of lease agreement requires the lessee to make payments only during certain months or periods each year, to meet seasonal needs or other cash flow constraints.
Deferred Payment Lease is a lease that contains a 30, 60, or 90-day deferment of the first monthly payment.
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