Equipment Financing — Plenty of Benefits Other Than Cash

One of the most popular and commonly used funding structures worldwide is Equipment Financing. Companies like yours use Equipment Financing structures to:

• Finance the Purchase of New Equipment

• Refinance Your Used Equipment to Free-Up More Cash For You

• Use As a Key Component of a Larger Financing Strategy

• Accommodate A to D Credit Profiles

Consider all financing options when acquiring equipment. We suggest you analyze your alternatives and look for solutions that best match your cash flow, tax strategy, balance sheet and equipment management objectives.

Some of the primary uses for Equipment Financing to consider include:

• Complete Flexibility: You choose the equipment types, lease term and end-of-lease options that best support your business objectives.

Project Financing: Streamline equipment procurement with turnkey solutions.

Cash Flow Management: You can structure lease payments to work with your business cycles. You can match payments to seasonal cash flows so you pay less during equipment startup, and/or establish quarterly, semi-annual or annual terms.

Equipment Management: Fair market value (FMV) leasing gives you the option to return equipment at lease end. Substitution of equipment during the lease term can be an option as well.

Convert Equipment To Cash: Sale/leaseback transactions with your used equipment enable you to generate needed capital that can be used for any number of reasons.

All-Inclusive Financing: We can design your lease to finance all costs related to your equipment project, including installation and “soft” costs.

Fixed-Rate, Longer-Term Financing: Predictable payments ease cash management, while longer terms can generally match the depreciated life of the equipment and offer lower payments.

Balance Sheet Advantages: Properly structured leases allow for off-balance-sheet financing that improves debt, working capital and return on asset ratios.

Equipment Financing also provides some excellent tax benefits for most businesses.

Off-Balance-Sheet Financing: Some operating leases allow your business to keep lease obligations off your balance sheet.

Tax Strategies:. Lease payments may be fully tax deductible as a business expense. Be sure to check with your tax professional. Payment schedules can be customized for seasonal, tax, or contract reasons.

Mid-Quarter Convention: Leasing can help you avoid the negative consequences to depreciation schedules when more than 40% of your equipment acquisitions occur in the 4th quarter.

This information is not intended as, nor should it be viewed as, specific legal, compliance or financial advice. Consult your tax advisor for information specific to the state(s) where you file taxes.

But, as we’ve said before, some lenders will embrace your industry and/or class of business when others won’t. So, if you need assistance identifying the right lender or deciding on the proper lease structure for your needs, you will save lots of time and wasted effort by asking us for a little help.  Our services are generally success based, so there’s no risk in talking.

If you need help, ask for it. Visit us tomorrow for another free commercial loan secret and be sure to subscribe to our RSS feed.

You can also contact us to ask questions and voice your concerns. Just pick up the phone and dial, CFIC Funding today at 1-424-224-7084! Ask for David Young. You can also visit or mail