09 29 2014

09 29 2014

Current Market Makes Equipment Leasing Attractive

As a small business owner, there’s no doubt you’ve weighed the benefits of equipment leasing. And with recent reports highlighting how difficult it is for some businesses to find the loans they need, there’s no doubt the idea of leasing instead of buying has become more attractive.

The most recent Small Business Credit Survey from the Federal Reserve Bank of New York showed that while businesses throughout New York, New Jersey, Connecticut and Pennsylvania were seeing an increase in loans for $1 million or more, loans for smaller businesses seeking lesser amounts were at the same levels as in 2005.

With 81 percent of businesses surveyed looking for loans of $500,000 or less, it’s clear that small business owners are struggling in the current market.

This is where leasing comes in extra handy. Unlike with loans, which may require compensating balances, large down payments, client list reviews and cash flow projections, leasing is a fast, streamlined process.

Of course, there are other advantages as well. These include:

  • 100 percent financing
  • Tax benefits
  • Improved balance sheet management
  • Access to more modern, high-end equipment

A wealth of choices

Equipment leasing isn’t a one-size-fits-all affair. That’s why it’s important to explore the different types of equipment leases available to you before making a decision.

One popular choice is known as a purchase option. When your lease ends, you can either purchase the equipment at its current market value, renew your lease, or return the equipment. Buying at the end of your lease can be a much more affordable option, as there’s a good chance the equipment will decrease in value over time. Otherwise, simply renewing your lease can keep your operations running smoothly without a significant cost.

Meanwhile, the dollar-buyout lease has much to offer. This arrangement allows you to purchase your equipment for a single dollar at the end of your lease term. For businesses that know their equipment is not likely to lose value and want to keep it when their lease is up, this option makes a lot of sense.

A high-cost equipment lease may be your best bet if you require equipment that costs more than $100,000. By using this lease, you can avoid the sizeable bite into your credit that taking out a traditional loan would result in.

In short, there’s no shortage of options for businesses looking to tailor leasing options to their specific circumstances. The key is to work with people who understand your needs and can help manage the process.


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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.


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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.


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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, text-messages, 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, text-messages, 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.


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