“Compaction Equipment Leasing For New And Used Assets”
Compaction equipment leasing is a form of financing where the asset is acquired by the leasing company and then provided to the borrower or lessee for use during the term of the lease.
The lease can be in the form of an operating lease or a capital lease.
An operating lease has at least 10% of the acquisition cost outstanding at the end of the lease term with the lessee having no more than an option to purchase. A true operating lease is also an operating expense to the business and not always recorded on the balance sheet other than a foot note.
A capital lease is similar to a loan from accounting and taxation purposes in that you can expense the interest paid and deprecate the asset similar to if you owned it.
At the end of a capital lease, the lessee or borrower must purchase the asset for a nominal amount, usually less than $20, to transfer ownership from the leasing company to the business.
We can arrange both operating and capital leases for new and used compaction equipment.
The financing is provided by leasing companies in our network that have a focus on construction equipment leasing.
A Compaction equipment lease can be arranged in as little as one day for financing amounts under $100,000 and up to 5 business days for larger amounts.
Compaction Equipment Leasing Rates And Terms Will Depend On Financial And Credit Profile.
For most “A” and “B” credit applications for compaction equipment, the borrower or lessee will need to be in business for three or more years.
Most small business leases require a guarantor and for better rates and terms, the guarantor’s personal credit will need to be 650 or greater.
Depending on the size of the equipment lease financing request, the business may need to provide accountant prepared financial statements and potentially tax returns to support historical cash flow and future debt service capabilities.
Regardless of financial and credit profile, we have “A”, “B”, and “C” credit options that can be considered in most cases.
Our goal is to get you working with the most relevant leasing companies as quickly as possible so you can get the capital in place that is required to meet your business needs.