Equipment leasing is a quick and easy way for business to obtain equipment to expand or start a business.
Examples, of equipment needed by businesses:
Doctors - Diagnostic equipment, exam tables, autoclaves, microscopes, medical furniture, computers. Farmers - tractors, plows, planters, manure spreaders, harvesters, bailers. all-terrain vehicles.
Call Centers - Predictive dialers, data handlers, call recorders/monitors, office furniture, computers. Warehouses - Forklifts, hand trucks, conveyors, shrink wrappers, racking, air compressors, ladders. Trucking - Tractor/trucks. flatbed, box, & refrigerated trailers, in-cab technology, material handling. Retail sales – Cash registers pricing guns, EFTPOS equipment, scanners, display shelving, computers. In leasing we can “bundle” several products into a lease, including, equipment, software, installation, taxes, maintenance etc. The lessee/user makes one fixed payment on the entire “turnkey” lease.
Leasing Terms & Types,
Leasing is “renting” equipment for a set period of time at a set rate of payment. The lessee/user makes fixed payments and retains use of the equipment for a non-cancelable lease period. The lessor retains ownership of the equipment. Leases are normally one to five years in length.
A lease can be structured so that the lessee can purchase assets at the end of the lease in a number of ways, including:
Percent of the purchase with option to buy, the lessee will pay a fee for the option to buy at a specified price at the end of the lease.
Fair Market Value Lease Buying Option, the lessee may, but is not required, to buy leased equipment/asset at the end of the lease for a price that represents the item's then-current worth. The Fair Market Value Buying Option does not indicate the purchase price in advance but is determined at the end of the lease term.
$1:00 Dollar Buyout Lease, lessee may buy the equipment/asset for $1. The dollar buyout usually has a higher monthly lease cost.
Of course the lessee may simple return the equipment/asset with no further obligation and “walk away”
Who Can Qualify?
Just about anyone can qualify for a lease. Bad credit/no credit is not a disqualifier. The lessor will determine the rate charged for the lease to account for the risk involved. If the customer can afford the monthly payment in order to get the equipment needed, then they should take the lease.
What is the interest rate on a lease?
The monthly cost of a lease is calculated using a “Rate Factor” rather than a compound interest rate as in a conventional loan. The Rate Factor is determined solely by the lessor, factor calculations include; ability to pay, credit, type of asset, location of asset, industry type, size and length of lease, among others.
For Application contact me at email@example.com
We have a new system that converts open top hopper rail cars (unused coal carrying cars) into a closed hopper system. We have a group of 76 cars that are immediately available. They are easily converted by adding a roof and changing the discharge pans. The following is a cost break down on purchasing and converting the 76 cars:
Material $ 6,585 X 76 = $ 500,460
Labor $ 4,783 X 76 = $ 363,508
Freight $ 350 x 76 = $ 26,600
Profit $ 1,904 X 76 = $ 144,704
Roof Subtotal $1,035,272
Rail cars $25,000 ea X 76 = $1,900,000
Roof and Pan Installation $ 7,800 ea X 76 = $ 592,800
The cars when complete lease for about $600 a month on a 60 month operating lease. The cars also have a 7 year straight line deprecation. We are looking for funding for the purchase of the 76 railcars, $1,900,000. The title to the cars stays with the entity funding the purchase until the cars are transferred to the end user. My partner can fund the conversion and we can provide leases. My partner in this has a takeout letter from Pacific West Equipment a bank that will take out the cars as soon as they are converted. The total turnaround time on the conversion is about 120 days.
We have a short time frame to secure the cars. They are inspected and fully certified for use. IS this something you could do?