Equipment Lease Financing

Adding equipment to your existing inventory requires an emotional decision of “Want and Need” as well as a financial decision of “How and When?”. By using a structured Equipment Financing program, you can take advantage of acquiring the equipment you need now, and pay for the equipment over time and maximizing cash flow. Some finance programs can allow your payments to be tax deductible.

Operating Lease, Capital Lease, or Equipment Finance Agreement?

For internal financial reporting, structuring an Operating lease will give you a lower payment and offer the ability to capitalize on the available tax advantages. The “Pre-Tax” payment made are accounted for on the income/expense sheet as a rental payment with a term end purchase option set at a Fair Market Value (normally a 10% residual). The Capital Lease and the Equipment Finance Agreement are nothing more than a Conditional Sales Contract and “After-Tax” payments are accounted for as a liability on the balance sheet. Tax savings versus Depreciation need to be considered. Speak with your accountant to see which method best suits your needs. We can provide additional detailed information upon your request.

Pricing and Terms

Pricing for lease financing can be very competitive used in conjunction with the available types of lease programs. Standard terms for most program and equipment type, range from 12 to 60 months. Standard programs require only first and last payment to start lease transaction. With review of a complete transaction, optional programs can be arranged. Some examples include:

· Delayed Payments- Up to 90 days before lease term starts.

· Seasonal Skips- Help cover seasonal cash flow restrictions

· Step up/down payments- Adjust payments as income and term matures.

How to get started

Simply fill out a one-page application for up to $75,000 and return to our office. Young businesses under two years old, weaker credit files, and transactions over $75,000 may require additional information for further review. To speed up approval process, a financial package may be requested. Upon review of the personal and business credit and we receive a satisfactory bank and trade rating, the file is reviewed for approval. Upon approval, a solid competitive payment and available program options can be addressed and discussed. At this time we can notify your vendor of approval, have an invoice issued to us for 100% of equipment cost if needed, and prepare document package for your review and signature. Equipment is then shipped and upon receipt, payment is made to vendor. If you are just shopping for equipment to purchase, a Line of Credit letter or a Purchase Order can be issued to let your vendor know you have the funds available for a future purchase.

At Pinnacle Capital, we take pride in helping your business grow with the acquisition of additional business equipment and explaining all options available to help you succeed. Let us know how we can help you with your business equipment needs.

Pinnacle Capital

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