EQUIPMENT LEASING OFFERS IMPORTANT ADVANTAGES OVER OTHER FINANCING METHODS:

SB Finance provides a wide array of equipment lease-finance solutions, allowing you to expand your business without tapping into your bank lines of credit. To design an equipment leasing plan that best meets your needs, you need to understand your options. Our team can answer any questions or concerns you have.

Added Credit Availability
Bank credit lines are not affected, so you retain your bank borrowing capacity for other needs.

Conserves Working Capital Financing
Equipment leasing finances 100% of the equipment cost, leaving precious working capital for other needs.

Improves Cash Flow
Equipment leasing allows you to pay for the equipment as income is earned from its use.

Tax Deductible
In many cases, equipment lease payments can be treated as a fully tax deductible expense.

Quick, Easy and Less Expensive
The whole equipment leasing process is faster, simpler, and often less costly than other equipment financing alternatives. Our leases are always less costly than normal credit card lines.

When deciding which type of lease is best for your company,  it is important to keep in mind:

• How long you want to use the equipment 
• What you intend to do with the equipment at the end of your lease 
• Your tax situation 
• Your cash flow 
• Your company's specific needs as they relate to future growth

 

EQUIPMENT LEASING STRUCTURES

Equipment leases can be structured as:

  • Capital/Finance Leases (For example: $1 or 10% Purchase Option)

  • True/Operating Leases (For example: FMV Purchase Option) 

  • Municipal/Not-for-Profit Leases (Tax-Exempt)

TYPES OF BUSINESSES FUNDED

  • CONSTRUCTION

  • CLIMATE FINANCING

  • TRANSPORTATION

  • FRANCHISES

  • RESTAURANTS

  • RETAIL

  • MEDICAL

  • BARS/NIGHTCLUBS

  • SALONS

Lease FAQs

An operating lease is a financing agreement where the term of the lease is shorter than the actual useful life of the equipment. For example, an airplane with an economic life of 25 years may be leased to an airline for five years on an operating lease. In business, operating leases are most commonly used to allow the business the use of equipment on a relatively short-term basis. 

Deciding whether a lease makes sense for your business depends on your firm’s circumstances at the time you’re making the decision. A few questions to ask yourself include how much you want to spend, how healthy is your cash flow, how long do you need the equipment, your history in caring for equipment, and what impact the lease will have on your taxes. Our team can help you determine if an lease has a financial benefit to your company. 

A lease is most beneficial to companies when:

  1. Equipment will not be used long-term. It doesn’t make sense to make a large cash outlay for equipment that will only be used for a short period of time.

  2. Your equipment will become outdated quickly. If technological advances in your industry tend to make your equipment obsolete every few years, a short term lease can help you stay up to date.

  3. Cash flow is tight. With a lease, you avoid a hefty up-front charge, and you can make payments as you generate cash flow with your new equipment.

  4. You want to protect your balance sheet. An equipment purchase is recorded in your balance sheet, which increase your debt and reduces your available cash. In contrast, most leases are not recorded as debt, and are treated as an operating expense.

  5. You want the tax benefits of leasing. A lease may allow you to deduct your payments as operating expenses during the period in which you pay them. If you purchase equipment, you may be able to deduct the interest, as well as the cost of the depreciation. Consult your tax advisor for which situation is most advantageous for your business.

Businesses should submit three months of bank statements, an invoice or detailed description of the equipment they wish to acquire in order to begin the financing process.

Equipment Leasing