Before we discuss the main advantages of leasing to your businesses, let's first find out what an equipment lease really is. An equipment lease is really a long-term rental agreement for just about any type of equipment. The equipment should be maintained well and it's also often needed that the lease term does not exceed the total life of your equipment. Once the lease term has ended, there is a option of returning the equipment towards the company that provided the lease or buying the equipment. Equipment leasing lets you obtain the equipment you will need at manageable monthly payments, quite often with no down payment required, which means that your company can thrive.
Successful financial professionals traditionally are already forced to invest many years in establishing themselves and building their logo and trust factor. In the past, you didn't enter into that is a until you were ready to devote a good portion you will ever have. After time, people simply figured had you been around for twenty years then you definitely has to be doing something right.
This is not true; the lender market, which is the amount of institutions making loans, has shrunk in the U.S., many of the ones still operating never have drastically altered their lending criteria. The same underwriting guidelines are still in place; it's only that now underwriters are now being more thorough inside their background audits and reviews. Time in business, banking accounts, income and trade sources are all verified carefully to be sure that it is all totally true and accurate.
LED lighting and retrofit projects fall under the category of "leasehold improvements" and "consumable products". Mention these two characteristics to your average traditional lender and they're going to be walking away within you before you've finished your sentence. In other words, the amount of risk by having an asset which can not be recovered is beyond what commercial lenders can approve. Step in the wholesale lenders and private investor groups that have filled in this gap and still have established approval criteria which many healthy companies can meet.
Business owners and financial managers should separate. What do we mean by that? We imply you should separate producer financing equipment and the price of the equipment from the financing. If you are dealing with a MFR that's also the financier of your respective asset be sure to maximize the advantages of that kind of financing, known as 'captive financing' since its usually the best accessible in terms of rate term, and structure.