Our President Glen Dalzell explains how equipment leasing can help your business acquire much needed tools of the trade
Depending on what your business does, new machinery and equipment (M&E) may be essential to allow your business to grow and remain competitive. Manufacturers know all too well how expensive specialized M&E can be. Many businesses don’t have enough available cash or credit to purchase the equipment they need. Equipment leasing can help your business “rent to own” that new piece of equipment that will take your productivity to the next level.
Purchasing equipment outright may not be a viable option for your growing business. Start-ups can have a difficult time securing bank financing which makes leasing a great alternative. Everything from computers to phone systems, trucks and trailers to manufacturing equipment– can be leased for a flat monthly payment that your business can afford.
Equipment Leasing Benefits:
The benefits of equipment leasing are easy to see. Spergel Corporate Finance (SCF) works with several leasing companies and can source the financing you need to help your business succeed.
- Quick access to the funds your business needs to purchase equipment and machinery.
- Affordable payment terms that will help your business continue to grow without cash-flow problems.
- An opportunity to secure funding if traditional lenders (banks) have turned you down.
How Does it Work?
Our leasing partners will advance funds to purchase the M&E you require. You will be required to make a modest deposit (10-20%) and your business will make a flat monthly payment for the term of the lease (typically 3-5 years).
M&E leasing is similar to leasing a vehicle. If your company continues to make your lease payments and honour the terms of the agreement, your business will own the equipment at the end of the term. The buyout amount will vary depending on the structure of the lease.
Once the leasing company has paid the vendor for the equipment, it will be delivered to your location and your business can commence installation and production. Leasing is a practical alternative to depleting valuable working capital and/or credit facilities and gives you the benefit of knowing what your monthly payment will be. If you think that M&E leasing may be the right solution for your business, please contact SCF and we can start the process and determine what your business may qualify for.