Listen to Richard Western on why Banks are our best and worse friends.
Equipment leasing provides enormous value for any business. With equipment leasing, unlike bank financing, there are no reporting requirements, hidden bank fees or other restrictive bank conditions.
If you make the regular lease payments then you will never hear from your equipment leasing company rather than meeting a bank's demanding reporting requirements your time is free to run your business.
Banks vs. Financial Leases
Most often, Banks tend to be highly restrictive with their lines of credit and loans and the assets of your company. Typically they will tie up all of the assets of a company as security for a loan or line of credit. These conditions restrict or limit a company's ability to borrow or to pursue alternative forms of financing. Often, bank financing will also require the pledging of personal assets, such as real estate, as additional security.
With Banks, it's important to understand the purpose of a line of credit . Lines of credit are to support short-term financing needs. Banks expect a line of credit to fluctuate between zero and the amount of the line. If it stays close to the maximum amount of the line, a Bank is likely to suggest your business needs a loan rather than a line-of-credit.
Banks are an integral part of operating a business, however, they are also very powerful. At any given time, they have the power to change their policies and lending criteria. When a Bank changes their policy and calls or reduces a loan, a company is vulnerable and may not have the capital resources to respond and weather the storm.
The good news is that there are no limits to the number of equipment leasing companies that can be structured for a company needing a lease. When there are sizable equipment requirements, rather than going with one leasing company and one large lease it may be beneficial to go with two or three equipment leasing companies.
An equipment lease enables a business owner to use their valuable time to run their business rather than prepare for monthly bank reports. Most importantly, equipment leasing is an alternative source of working-capital that avoids undue restrictive financial conditions on your company's assets.
Ready to Lease Equipment?
Types of Leases
- Construction Equipment
- Horizontal Drilling
- Tree Service Equipment
- Firewood processor
- CNC saws
- Point-of-sale systems
- Computer systems
- Waste management equipment
- Manufacturing equipment