Equipment leasing is basically a loan. A loan in which the lender buys and owns the equipment and then rents it to a business at a flat monthly rate for a specified number of months. This arrangement does not affect the business line of credit at any other financial lending institution. At the end of the lease period, the business may purchase the equipment for its fair market value or a fixed or predetermined amount (could be as little as $1.00), continue leasing that equipment, lease new equipment or return the equipment to the lease company.
A lease contract can include most types of equipment and also more than one item. Because the lease is tailored to the business it could include items from more than one source on each contract, such as remodeling or additions to the premises. Leasing can usually cover soft cost like delivery, installation and training services. Our equipment does have a serial number so it can be listed and identified as a collateral.
Leasing is appropriate for any business at any stage of development. For start up businesses with no revenues yet, smaller equipment leases ($100,000.00 or less) are feasible on the personal credit of the founders or owners - provided they are willing to make the scheduled payments. Contracts can be structured so as to adapt to almost any individual situation, such as length of the lease term and possibly skip payment terms during slow business periods. Cost for leasing is generally more expensive than bank financing, but in most instances it is more easily obtained.
Lolkus Outdoors, LLC, does not have an in-house leasing program. However, we do work with a couple different companies, Contact Us to find out more information.