Leasing Calculations
Why Do Companies Lease Equipment?
There are many reasons why companies lease equipment. Equipment leasing provides flexibility and protection against technological obsolescence. Leasing allows a company to better match cash outflow with revenue production through the use of the equipment. Finally, leasing conserves valuable working capital and bank lines.
Business equipment leasing is efficient, convenient, and allows for 100% financing.
Balance Sheet Management - Certain types of leases help the lessee better manage the balance sheet and improve the overall financial picture, by conserving operating capital and freeing up working capital and bank credit lines for inventory, expansion and emergencies. See Operating vs Capital Lease
100 Percent Financing - With equipment leasing, there is no down payment. The term of the lease can be matched with the useful life of the equipment.
Asset Management - A lease provides the use of equipment for specific periods of time at fixed payments. It assumes and manages the risks of equipment ownership. At the end of the lease, the lessor disposes of the equipment.
Service Additions - Many lessees choose to structure their leases to include installation, maintenance and other services, if needed.
Tax Treatment - Leasing offers the option of deducting 100 percent of the lease payment as a business expense. See Operating vs Capital Lease
Upgraded Technology - Leasing provides companies with the ability to keep pace with technology. The lessee can upgrade or add equipment to meet ever-changing needs.
Specialized Assistance - Lessors are specialists in equipment leasing and financing, and understand capital equipment markets.
Flexibility - There are a variety of leasing products available, allowing the lessee to customize a program to address needs and requirements - cash flow, budget, transaction structure, cyclical fluctuations, etc.
Proven Equipment-Financing Option - Over 30 percent of all capital equipment in the United States is acquired through leasing. In fact, eight out of 10 companies lease their equpment.
To start the approval process please provide the following information:
Option#1: Application Only,please provide the following information:
Complete Credit Application & signed proposal(Download from below)
Copy of the quote
First page of the last 3 months of the company's bank statement(used to determine the average bank balance)
Option#2: Full Disclosure, please submit the above information plus:
Last 2 years corporate financial statement & tax returns(if not reviewed or audited)
Interim and prior year comparative financial statement
Last 2 years of tax returns & a personal information statement from the shareholders(no older than 90 days)
Your acknowledge that the terms and conditions of the proposal are satisfactory by signing and returning it to JH Technologies. This proposal is based on current like ICE swap rates. For any increase in like term ICE swap rates , a reciprocal charges will be made to the lease rate factor.
The borrower will be required to pay a documentation and inspection charges and reimburse any fees assessed for necessary lien search required to obtain clear title to the equipment. Terms are subject to credit review and documentation by ICR or affiliate; approvals are valid for 60 days and payments are fixed at funding
Lease Calculator
