Get Equity from Your Equipment to Grow Your Business

Did you know there’s a way to sell your equipment and without losing it? Yes, you get cash from the sale and keep using the equipment.

That’s called sale and leaseback financing.

It might be a good option for you if:

• You need financing quick to seize an opportunity
• You don’t want to increase your company’s debt
• You own your equipment

What is Sale and Leaseback?

Sale and leaseback – leaseback for short – is a way to turn the equity in your assets into cash. The way it works is that you sell the equipment to a leasing company and then lease it back right away. You still have the equipment and you can keep using it like before. It’s your best option if you want to have your cake and eat it too.

[Read more…]

What is Collateral? And Why Does it Matter?

Collateral is an asset(s) a lender accepts as security for a loan, finance, or lease. It is something you would commit to guarantee a loan. Almost all equipment, vehicle, or home loans will require some sort of collateral assets.

Loan collateral is purely for the protection of the lender. The lender wants to ensure you will pay for the loan or lease they are providing to you. Thus, if you default on your payments, it is possible that the lender may attempt to repossess an asset or put a lien on it.

The more confidence you can give the lender in your ability to pay back the loan, the more likely you will get approved with better terms.

So how does collateral work in equipment financing and equipment leasing? Let’s explore…

[Read more…]

Understanding the Pros and Cons of this Popular Financing Option

In the market for new or used equipment? Maybe your business is in a growth cycle, changing strategies or replacing equipment that is past its prime.

Whatever the reason, you’re likely thinking about financing. Should you lease or buy? What financing strategy will prove most affordable—and help you stay flexible for the future?

Getting a clear picture starts with comparing the two basic financing types. Leases and loans both have a lot to offer. You can optimize your return on investment by identifying the format that best suits your business needs.

[Read more…]

How to Evaluate Your Lease and Make the Best Choice for Your Business

Financing can be confusing and, yes, kind of boring. It does pay to understand a few things though, especially when it relates to saving on your monthly lease payments.

Give yourself an advantage by understanding the breakdown of monthly payments. There are a lot of moving parts in a lease. If you just compare payment amounts, you may not be getting the full picture.

Your lease term, end of lease agreement, inspection or transport fees, down payment and interest rate all go into determining your monthly payment. Let’s take a closer look at the factors that go into determining your monthly payment.

[Read more…]

Leasing Can Minimize Your Upfront Costs and Offer Surprising Flexibility

Dump trucks and dump trailers are expensive. Even used dump trucks can set you back over $100,000—easily making cash purchase difficult for most owner-operators. You need the dump truck to get the contracts to pay for the truck.

The good news? There are more financing options than you might think.

Traditional bank loans are not the only way to finance new and used equipment. This article will lay out 7 ways leasing can change the financing game.

[Read more…]