Used Equipment and Machinery Leasing
When it comes to used equipment and machinery leasing, we are ready to give you the best financial solution. By looking closely at your machine tool project, we are able to be an asset to you. With our years of experience in the machine tool industry and manufacturing, we can assure you that we understand your business like no other leasing company. We know the manufacturing industry well and we are prepared to be an asset to your company.
Financing used equipment and machinery often makes more sense financially than opting for new equipment. When financing a large sum of capital is not an option, financing used equipment may be the way to go. By acquiring used machine and equipment, you retain capital and still receive the benefits of top of the line equipment.
In the manufacturing industry, it is expected that machinery will break down. In most cases, there’s an expensive part that you need that’s not covered by the warranty. With these costly repairs along with the lost production time, your profit margin diminishes considerably. In order to succeed in today’s manufacturing business, you will need the top new and used commercial equipment along with the best financing options available. Stay ahead of the competition with our help. We offer accurate valuation of older equipment so that you’ll be paying the right amount for your equipment lease.
The Advantages of Leasing Used Equipment and Machinery?
- A good Balance between Usage and Cost – When you lease used equipment, you’ll get returns that will exceed the cost of the equipment.
- Bundled / Packaged Equipment – Sets of equipment are bundled together in one lease package for a more convenient payment scheme each month.
- Get Newer Models and Equipment– Through used equipment and machinery leasing, you can instantly upgrade your equipment and get newer models after each leasing period.
- A Lease is Not a Liability – It is not a long-term debt which makes your company more attractive.
- Tax Benefits – A lease is not considered as a purchase, but just a tax-deductible overhead expense.
Types of Used Equipment and Machinery Leases
Small businesses and machine shops often struggle to acquire equipment and machinery that is necessary for their operation. We have a wide range of leases to choose from. We’ll help you in each step of the way in selecting the right lease for you. We will take a look at what equipment you need, your business goals, cash flow requirements, and decide which financing option is best for you.
There are two main types of leases that can be used to purchase used equipment: Operating leases and Capitol Finance leases.
- Operating Lease – This type of lease offers the lowest payment in any kind of financing scheme. This can give you a better ROI because of a lower asset base, since it is qualified for an off-balance sheet treatment. There are also reports of higher earnings in some cases during the early stages of the lease. On the books, the used equipment – machinery lease expenses are considered as operating expenses. It does not affect the capital of the business.To further explain, the right to use the equipment is given to the company (Lessee) from the owner (Lessor), which is the leasing company. On the income statement of the Lesse, the lease is an operating expense because there’s no risk associated with the ownership of the equipment. There’s also a tax advantage because the equipment is both considered an asset and a liability. There’s a depreciation claim each year and there are also interest expense deductions on the lease payment.
* Consult your accountant and discuss this strategy
- Capital Lease – There are also tax advantages in this type of used equipment and machinery leasing because the Lessee will take ownership of the equipment by purchasing it at the end of the lease term. This is a guaranteed purchase option. For instance, a $1.00 buyout.In other words, ownership is transferred by the end of the lease. The Lessee treats the used equipment – machinery leasing as a purchase since the Lessee will be having the benefits and responsibilities that come with owning the equipment.The tax advantage for this type of lease comes in since this is considered as a purchase. On the books, it’s an equipment/machinery purchase. It is reported as both an asset and liability on the balance sheet. There’s also a depreciation claim each year for this type of lease.
* Consult your accountant and discuss this strategy
How to Choose the Right Leasing Company?
At Tech Financial Services, we have a team of experts on standby who are eager to help clients in every step of the equipment leasing process. We also have established partners on new lease programs, tax advantages, and new promotions. Give us a call today and we’ll guide you in any kind of used equipment and machinery lease that your business needs.
- Experts in Machinery – We understand the equipment like no other company. We will find the right equipment financing option for your needs. We offer accurate valuation of older equipment so we’ll know the true value of the equipment.
- Accurate Valuation – We offer accurate valuation of older used equipment. We know the true value of the equipment you are purchasing.
- Special/Competitive Rates – Since we specialize in this process, we can give you best lease terms and rates when compared to other banks and financing companies.
- Highly Experienced – We have been in business for many years and have always provided the best leasing options for our clients for both new and used equipment and machinery.