Finance & Lending

 

03 13 2014

03 13 2014

4 Benefits of Equipment Leasing and Financing

Small business owners are often looking for opportunities to not only expand their companies, but also ways to save money while doing so. One of the most effective ways to improve business is to invest in new technology and equipment. Unfortunately, this can turn out to be an expensive endeavor. For entrepreneurs hoping to increase revenues and keep up with new technology and machinery, equipment leasing is a reliable option to keep expenses low while staying up to date with competitors’ business practices. Here are a few benefits of equipment leasing:

1. Reduce costs

It’s no secret that equipment can be expensive, and what’s more, once business owners have purchased new tech solutions, it can be frustrating to spend large sums of money on business tools that may soon be obsolete.

With equipment leasing, company leaders can save money and avoid paying significant up front costs, thereby reducing expenses. Furthermore, if a business owner is on the fence about investing in new technology, they can test out equipment without having to fully commit to a product. If, at the end of the lease term, they have decided they would rather go another route, business owners are free to do so and look around for other options.

2. Opportunity to upgrade

Another added benefit of equipment leasing is the option to upgrade to new or updated machinery, materials or accessories. It is a common grievance of companies of all sizes that, several months or a year after purchasing equipment, it seems to have been replaced by a better version, making their current materials seem antiquated by comparison.

However, when a company chooses to lease instead, they can contact their provider and upgrade to more advanced options. Going this route helps small business owners stay on top of costs while getting to know new technology, beating other organizations to the chase.

3. Potential tax benefits

Some of the more underrated advantages of equipment financing are the tax breaks small business owners can enjoy when they opt to lease rather than buy. Under Section 179 of federal tax laws, the IRS has granted equipment leasing a tax exempt status. The Section 179 Tax Provision for 2013 allows companies to deduct as much as $500,000 for qualified new and used business equipment.

4. Repairs may be covered

Even when organizations are careful with their equipment, accidents can happen. When investing fully in new business materials, if something goes awry with equipment, companies must pay for repairs or replacements entirely on their own. Equipment financing lenders can take the burden of some of these costs, helping companies remedy equipment problems sooner rather than later. This way, businesses don’t have to spend exorbitant amounts of money or time trying to get back on track with operations.

These are just a few of the valuable uses equipment leasing provides. If small business owners are interested in propelling their companies forward, saving money and staying ahead of competitors, they should contact National Funding about leasing options today.

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General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 

US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan.  What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number.  We will also ask for your name, address, date of birth, and other information that will allow us to identify you.  We may also ask to see your driver’s license or other identifying documents.

 

For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.

 

For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121.  Funding amount and credit approval is subject to a full credit profile review.