An Equipment Lease allows for the acquisition of equipment with monthly lease payments. At the end of the Lease Term the equipment can be owned by the borrower for final payment. End of term buyout can be either $1.00 or fair market value. Leasing preserves capital, providing use of equipment over its anticipated useful life.
- Typical Equipment Lease Funding Range: from $10,000-$1 million plus, Lease equipment must have direct business purpose
- Credit Profile: A+ to C- based on business and owner credit histories, and business total debt outstanding
- Lease Term: Typical Lease Term is 2-5 years, subject to credit and type of equipment being leased.
- Lease Expense: Lease rates are expressed as a factor, but can be calculated as an APR, APR % range from single digit % to 20% or greater. Lease down payments range from 2 lease payments, 20% or more of the equipment value.