6701 Garden Rd. Unit 3
Riviera Beach, FL 33404 USA
Toll Free: 1 (866) 858-4982
Local: (561) 741-7022
Leasing Guideline and Payment Structure
Benefits of Financing
There are many benefits of equipment financing including the following:
- 100% Financing. Leasing covers 100% of the equipment cost with room to add soft costs including training, installation, and maintenance.
- No Down Payment. A security deposit equal to two months rental payments is usually all that is required.
- Possible tax savings*. If a company is in the 34% tax bracket and has a lease with a monthly payment of $500, the payment may be reduced to $330 - that's a monthly savings of $170 ($500 x 34%) or $2040 annually. *Consult your tax advisor.
- Flexibility. Customize a lease to fit your particular situation with skip payments or seasonal payments.
- Use inflation to your advantage. If you pay cash for your equipment, you pay with today's dollars at today's value. Through leasing, you pay with next year's inflated dollars, and the next, and the next.
- Increase profits immediately. With leasing, you only need to cover the monthly payment for the new equipment to be profitable from the first month. Example of the cost effectiveness of a lease: A monthly payment of $500 divided by 30 days = a daily cost of only $16.67! Divide $16.67 by 8 work-day hours to get an hourly cost of $2.36!
- Preserve bank credit lines. Leasing doesn't affect your bank borrowing limits. You still have 100% of your credit available.
- Avoid obsolescence. Upgrade Leases are easy with most modern equipment always available.
- Conserve working capital. Cash isn't tied up in overhead; it's free for income producing investments.
- Leases may have accounting benefits. Monthly payments may be deductible as operating expenses rather than accounting for the equipment as an asset.
Commonly Financed Equipment
Below is a list of typically requested equipment for lease. All leases must be for approved equipment. The items below are some examples of the type of equipment we can offer leases on:
- Cold Water Pressure Washers
- Hot Water Pressure Washers
- Steam Pressure Washers
- Sewer Jetters
- Water Blasters
- Trailer Mounted Equipment
- Vacuums
- Carpet Extractors
- Floor Scrubbers
- Engines
- Generators
- Parts Washers
- Water Recycling Systems
- Water Filtration and Recovery Systems
- Water Containment Systems
- Wastewater Treatment Systems
- Portable Wash Pads
- Chemical Sprayers
- Hydrostatic Test Pumps
- Water Pumps
- Space Heaters
- Steam Generators
- Snow Throwers
- Car Wash Pump Stations
- Car Wash Vacuums
- Detailing Stations
- Lifting Equipment
- Pipe Inspection Equipment
- Pet Washing Machines
| Payment Type & Features | Cash | Loan | Lease |
| Cash Flow | Buying has an immediate impact on cash flow by diminishing cash reserves. |
Down payment required and loan payments are generally higher than lease payments. | No down payment required. Leasing usually has less impact on cash flow due to lower payments. |
| Line of Credit | Liquid assets are depleted and may affect credit. | Taps the line of credit. | Does not affect line of credit. |
| Equipment Risk | The owner bears all the risk of equipment devaluation. Obsolescence must be tracked by the owner. |
The owner bears all the risk of equipment devaluation. Obsolescence must be tracked by the owner. |
In many leases, the burden of taxes and insurance is managed by the lessor. |
| Asset Liability | Owners must manage asset liability on their books. Financial accounting requires owned equipment to appear as an asset with a corresponding liability on the balance sheet. |
Owners must manage asset liability on their books and are required to have equipment appear as an asset with a corresponding liability on the balance sheet. | Operating lease assets are expensed. Such assets do not appear on the balance sheet, which can improve financial ratios. |
| Rate Risk | Cash should be used for income producing investments since you pay with today's dollars at today's value. |
Banks prefer to loan money on a floating or variable rate tied to prime. Rate risk is on the customer, not the bank. | Payments are fixed for the lease term. Pay with next year's inflated dollars - take advantage of inflation. |
| Soft Costs | Soft costs such as installation, training can erode cash reserves. | Banks rarely finance soft costs. Cash is usually needed. | Leasing may cover all soft costs including maintenance and software. |
| Upgrade | Owners must manage disposal/selling of outdated equipment. This can slow down the upgrade process. |
Owners must manage the disposal/selling of outdated equipment. This can slow down the upgrade process. |
Leasing allows for easy upgrades or additions and keeps the same payment by simply extending the lease term. |
*All lessees should consult with their tax advisor on the specific impact to their business. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Payment Structure | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||