Citizens Business Finance equipment financing has specific advantages over other types of financing or purchasing with cash that can be crucial to your company’s success: The term and payment structure of the equipment lease are fixed once the lease is approved. You know exactly what your payment will be every month and to help you better forecast your cash flow.
Flexible Small Business Equipment Financing
However, we are flexible to unforseen needs so payments can be adjusted by lengthening or shortening the term of the lease; significant sales tax and installation charges can be added into the lease financing; in most cases, the full amount of each lease payment is deductible for tax purposes*; and choosing a residual based or fair market value lease transfers some of the risk of holding onto obsolete equipment. An equipment lease through Citizens Business Finance can be much more advantageous than other types of financing or bank loans. Consider below the types of leases that might be right for your business:
Fair Market Value Lease
A fair market value lease is a traditional lease agreement with lower monthly payments than a buyout. You have three options when the term of your equipment lease ends:
- You can purchase your leased equipment at fair market value
- Renew the equipment lease
- Return the equipment - an excellent option for customers expecting a decrease in the value of their leased equipment
Dollar Buy-Out Lease
With this equipment lease financing option, at the end of your lease term, you “buy” your equipment for just a $1. This is an attractive option for companies who know their equipment will not lose value and are looking to keep their equipment at the end of the lease.
High Cost Equipment
Citizens Business Finance offers commercial leasing for large equipment purchases over $100,000. Many banks will include equipment leases on your business available credit and reduce your credit line limits accordingly. By doing business with Citizens Business Finance, your equipment leases won’t affect your available bank credit.
* Consult your tax advisor to make sure the type of equipment lease you are entering into allows for a tax benefit.
For more information call us today at 800-444-6372 or click on the Apply Now! button at the top of the page for free evaluation.
