“Audio Equipment Leasing And Video Equipment Leasing Options
Audio and video equipment lease financing can be arranged through a number of different leasing companies in Canada and the U.S.
For leasing amounts between $2,000 and $50,000, financing can typically be arranged in 24 hours or less once an equipment leasing application has been submitted to the appropriate leasing sources.
Larger requested amounts may take a day or so longer to get approved due to fact that leasing companies may want to see more financial information to support the deal and also may require more than one level of credit review internally.
But for smaller amounts, the financing process is primarily based on strength of credit, so if the company and/or guarantors have solid credit in place, amounts under $50,000 can be approved without much additional information.
Audio and video equipment would primarily fall into computer hardware and software leasing or a related category in terms of the leasing company’s interest in the financing scenario and the manner in which they assess their credit risk.
Similar to other forms of hardware and software based products, there is not a whole lot of security value in the assets to the lender or leasing company, so the strength of any financing approval is going to be from the financial and credit profile of the borrower or lessee.
That being said, technology related assets are a growing financing area due to the fact that technology is always changing which means that whatever you purchase or finance today will need to likely be replaced in the near future, providing a further financing opportunity to the leasing company.
And from a borrower’s point of view, getting lease financing approved for audio and/or video equipment will also build your credit acquiring capacity with leasing companies, providing you with easier access to capital in the future, at potentially better rates and terms.
Audio And Video Equipment Leasing Options
From a lease financing point of view, you can get an operating or capital lease into place for your capital requirements.
Operating leases allow you to give back the assets at the end of the lease term to the lessor without having to pay anything further.
This typically also provides for a lease term of no more than three years to cover off the lender’s resale risk of used assets in the future.
For longer equipment leasing terms, you would have to acquire a capital lease where ownership of the audio and/or video equipment would be transferred over to you at the end of the lease term of a nominal fee.
With a capital lease, the term of financing could potentially fall in the 48 to 66 month range.
If you are in need of audio visual commercial financing and want to better understand you equipment leasing options, I suggest that you give us a call so we can quickly assess your requirements and provide a run down of the different financing solutions that are available to you in the market place.