Business Equipment Leasing

What is business equipment leasing?

Business equipment leasing is essentially a loan in which the lender (Connect Lease Corp.) buys and owns equipment and then "rents" it out to a business at a flat monthly rate usually for a specified number of months. At the end of the lease, like any lease, the business may purchase the equipment for its fair market value (or a fixed or predetermined amount), continue leasing, lease new equipment, or return the equipment.

What size of business should consider business equipment leasing?

Any business at any stage of development should consider business equipment leasing as it is a very cost effective alternative to out-right purchasing. For start-up businesses with little to no revenues, smaller leases, those of $100,000 or less, are easily obtained and are feasible on the personal credit of the owner(s).

Who supplies leasing companies with capital?

Of the billions and billions of dollars that investors pour into the capital markets each month, a good portion finds its way to leasing companies like Connect Lease Corp. The companies then use these funds to purchase equipment (business and commercial) on behalf of businesses. As the economy improves and more and more money is flowing into the markets, leasing companies are flush with capital. As a result, they are eager to do business and respond to competition with lower monthly rates.

Some advantages to leasing

Leasing can also finance the soft costs often associated with equipment purchases, such as installation and training services. Leases are also usually easier to obtain than funding through bank financing

How easy is it to obtain a lease?

Very easy for leases of less than $100,000. An application for a smaller lease is generally no more complex than a credit card application. Leases for more than $100,000 require detailed financial information from the business, and the leasing company conducts a more thorough credit analysis than it would for a smaller transaction.