Lease Process Equipment Lease Financing:
Loan sizes up to $100,000
LeaseProcess is your complete source for flexible business and professional equipment leasing.
Our lease financing plans include all equipment warranties, tax, freight, installation, and training. Small and medium sized businesses, municipalities - even start-ups can take advantage of our exceptional service.
Our Mission - Efficient Process
It is our mission to make it easy for you to lease the equipment your business needs. With LeaseProcess there are no financial statements to complete. Simply fill out a one-page application and we'll have your credit approval in no time. We use proprietary database and customer relations management software to accelerate the leasing process, so you'll be up and running fast with your mission-critical business equipment.
We value your ongoing business, and once we have your application on file, it will be easy for you to get other equipment leases without additional paperwork.
LeaseProcess is committed to excellence and superior service. You can rely on our dedicated team of experts, who have years of experience in providing equipment leases to a wide range of businesses. They'll answer any questions you may have, so you can acquire or upgrade equipment quickly and cost-effectively.
Types of Leases
The most important thing for your company to do upfront is to choose the right lease. Many companies lease or finance equipment without first considering the differences in expense deduction methods between a true lease or loan. It's only after year-end when tax time arrives that they find out the type of lease or financing they chose did not maximize their possible deductions for that and future years.
The end-of-lease residual or purchase option is the primary factor that determines the tax handling of your lease. Every for-profit company in the U.S. has an amount of capital equipment they can purchase each year that can be fully expensed under I.R.S. Section 179. If your company has not exceeded the annual limit, then a finance lease with a $1.00 residual may be the choice for you.
On the other hand, if you have met your maximum capital purchase deduction for the year or regularly do so, you may want to choose a true lease with a fair market value residual or purchase option not less than 10% of the original equipment price.
Since the total monthly payments of a true lease are normally expensed each year, you may be able to accelerate your equipment depreciation if the lease term is less than the term required to depreciate the asset under its classification. You will also save in the accounting costs associated with creating and managing depreciation schedules.
Another important factor in choosing your lease is weighing the benefits versus disadvantages between longer and shorter terms.
Longer terms can provide for lower monthly payments and increased annual cash flow for revenue producing assets. The main disadvantage to longer lease terms is the higher balance you will have to pay off if you want to trade out of the equipment or buy-out the lease early for any other reason. If the equipment you are getting does not retain its value, depreciates in value quickly, or regularly becomes obsolete, it may be wise to choose a shorter term.
The two primary benefits to a fair market value lease, which may or may not qualify as an operating lease (off balance sheet financing), are that you may be offered below market rates and you have the power to negotiate the end of lease purchase price. Best of all, you can use the equipment at a low rate, just turn it back to the leasing company at the end, and lease new state of the art equipment with up-to-date technology.
If you are acquiring equipment that you are planning to keep for longer than the lease term and it has high value retention, you may not want to utilize this type of lease. Our consultants can advise you as to which leasing option may work best for your company.
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