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Archive : July 2013

By The Leasing Group

Get ready to take on the Bridges Project with an equipment lease

If you do business in the Louisville region, you’re aware of how significantly the Ohio River Bridges Project will affect commerce here. You’ve no doubt heard some of the negative backlash from various groups, but no one can deny that the Project is already having a positive impact on local economic development. Such a massive undertaking means job creation and business growth, plain and simple.

What you may not know is that Walsh and WVB, the lead contractors on the project, simply don’t have the capacity to get it all done on their own. They will each need to hire out much of the work to subcontractors, including excavation companies, concrete firms, pavers, structural engineers, steel fabricators… the list goes on. This could amount to pieces of the pie for hundreds of subcontractors throughout the Louisville and Southern Indiana area. Subcontractors need to be ready.

To take on a contract as large as the Bridges Project, a contractor might need to add 10 trucks to a two truck operation.  Such rapid growth will make it more difficult to obtain financing.  The Leasing Group can help.  Applying for an equipment lease is a viable option for any business that needs to grow in a hurry.  Contractors should consider getting pre-approved for lease financing… NOW!  A company poised and ready to take on a big job will be more attractive than one still needing to jump through financial hoops. 

The Leasing Group can also help a subcontractor bundle multiple leases on different types of equipment from different vendors. Rather than enter into lease financing with each individual vendor, let us put one lease in place for all your equipment needs. (LINK TO BUNDLE ARTICLE)

If you’re a contractor in the Louisville area who is looking to get in on the Bridges Project action, contact The The Leasing Group at (502) 547-2773 to find out how we can help position you above your competitors.

By The Leasing Group

Get a free lease term analysis

Have you recently started the process for equipment lease financing? We’re sure you’ve carefully looked over all the aspects of your lease, but we would also encourage you to take advantage of our expertise. The Leasing Group is offering a FREE lease term analysis, so why not let us look over your lease terms before you sign? Let us read the fine print so you don’t have to.

Many of our clients come to us, confident they have caught every loophole and technicality in their lease, only to find out that they are missing something buried in the deep recesses of such a substantial document.

For example, a commercial pharmacy client was all set to sign on the dotted line for a lease covering a medication dispenser. When the advisors at The Leasing Group examined the lease with our expert eyes, we found that the pharmacy was being double taxed. The sales tax had been assessed at the time of purchase, and then a second time in their lease payments. The additional cost would have exceeded $15,000.

Yes, these are some dramatic savings, and we can’t promise those results for every client. In fact, your lease is probably just fine. But why take the risk when you can get a free assessment? Call The Leasing Group today at (502) 547-2773. Or click
here
and fill out our quick request form.

By The Leasing Group

Equipment Financing: Five advantages of a lease vs. a loan

Years ago, the word “lease” brought to mind something you could basically pay to borrow or “rent” for a year, or two, or five. As a consumer, you can still rent furniture, appliances, and cars for a set period of time, then turn the equipment in at the end of the lease. You never owned it. You simply used it for awhile.

Today, in the world of business equipment leasing, a lease looks very much the same as a traditional loan. You don’t turn in the backhoe or dental chair at the end of the term. You take possession of the equipment from the get-go, and it’s yours for keeps.

When it comes down to the details, however, there are some distinct advantages of lease financing over a traditional loan. Here are a few:

1. In a lease, you can obtain 100 percent financing, including sales tax, if you need it. In a traditional loan, you might be required to put 20 percent down. For a $100,000 dump truck, that would translate to $20,000. Many businesses might not have that kind of cash lying around.

2. While a loan has many of the same options that a lease does, most banks don’t take advantage of them. For example, loan documents can be written to skip payments or create a variable payment structure, but they rarely do. However, it’s very common for lease documents to include this variable payment language. If you need payment flexibility, a lease is probably the way to go.

3. Both a lease and a loan require some form of collateral or security. A lease is typically secured only by the lease equipment. However, if you have taken out a traditional loan, you could end up with a lien on not only the equipment, but against other business assets as well.

4. Late payments aren’t as big of a hassle in a lease. If a payment is made late during the term of a lease, there is usually a grace period after the due date, and then only a flat-fee penalty is assessed. In a loan, interest accrues for every day your payment is late, with no grace period. You also might pay penalties at the end of the loan term.

5. With a lease, a business can enlist The Leasing Group to pay vendors and coordinate equipment delivery. The funds are released by The Leasing Group to pay for the equipment on your behalf. With a loan, you would be responsible for obtaining the funds, paying your vendors, and arranging delivery details. Our services can be especially helpful when you’re dealing with several vendors. (Click here to read an article on the benefits of bundling leases from multiple vendors.) In some cases, The Leasing Group can also get vendors to waive a required down payment, because of our solid reputation.

As you can see, a lease today functions much like loan, just with greater flexibility, and in some cases, more favorable terms. Give us a call at (502) 547-2773 to find out how we can help you secure equipment lease financing.

By The Leasing Group

What businesses need to know to qualify for credit

So, you’re considering an equipment lease for your business, and you’re starting to look into how the credit process might work. You probably know that your financial history plays a big part in qualifying you for lease financing. But did you know other factors can affect your credit and, in turn, your ability to get lease financing?

Consider the following before you apply for a lease.

First, do your financial statements show profitability? Banks want to see profitability over the course of several years. Banks also look for positive cash flow and a positive net worth on your balance sheet.

Sometimes a negative net worth can be offset by current profitability. The Leasing Group can help sort through any holes or discrepancies in your financial statements and present your company’s economic situation in the most favorable light.

Next, how long have you been in business? To have a viable credit history, it helps to have a business history of at least three years. However, if your business is relatively new, you might still be approved if you can show strong personal credit and liquid assets.

What about cash flow coverage? If you take your operating cash flow and divide that by existing debt payments, including principal and interest, is the result 1.25 or greater? If not, lenders might have a hard time justifying an addition to your debt load.

And finally, do you, as the business owner, have a credit score of more than 700? Are you sure? Have you checked your score recently? Small, unpaid or disputed medical bills often lower your score often unbeknownst to you. The Leasing Group can help you sort out personal credit problems before you apply for a lease.

If your company is a bit iffy on a couple of the above points, let The Leasing Group present your financials and increase your chances of approval. Our experienced advisors understand lease financing and can often find creative ways to enhance your chances of approval. For example, if you’re looking to lease a revenue-producing piece of equipment, we can demonstrate how it will positively impact your financial statements.

If your credit picture is a little blurry, let The Leasing Group take a new look at it through our expert eyes. Contact us at (502) 547-2773.

By The Leasing Group

Top seven most frequently leased items

In a previous post, we talked about some items that you might not expect to find in the realm of equipment leasing, but those aren’t the norm. Leasing equipment in general, however, is very common, especially when acquiring the following categories of equipment.

Here are the top 7 most popular items leased:

1. Commercial vehicles. Owning, running and maintaining a fleet of vehicles can cost you a lot of time and money. If your company uses passenger vans, delivery vans, box trucks, tractors and trailers, or any other vehicle to conduct daily business, leasing might be a solid option for you. From nursing homes that transport groups of residents to activities around town to trucking companies, commercial vehicle leasing is a popular financing option.

2. Medical and laboratory equipment. Most consumers have experienced the high cost of health care. Some of that cost can be attributed to the equipment doctors and dentists need to provide effective diagnosis and treatment. It’s expensive. For many practitioners, leasing items such as X-ray machines, lasers, MRI and CT scanners, and surgical tables enables them to keep their costs down. Medical and dental equipment leasing is very popular choice.

3. Restaurant and hospitality equipment. The restaurant business is risky. Many proprietors don’t have the initial capital at hand to purchase stoves, refrigerators, exhaust hoods, tables, seating, and a point-of-sale cash register system. That’s why leasing has been popular among restaurant operators for many years.

4. Construction equipment. Equipment leasing is often the first choice for general contractors, roofers, remodelers, home builders, and excavation companies. Heavy construction equipment can be extremely costly, so these companies often find success in leasing dump trucks, backhoes and other earth movers, survey equipment, loaders and more.

5. Information technology equipment. No matter what business you’re in, you will likely need an IT backbone to support your operations. So it’s no wonder that IT equipment is one of the most popular types of equipment leased. Computers, servers, software, phone systems, networking and cabling are smart to lease.

6. Municipal equipment. Cities and townships are always on a strict, often tight budget and are constantly looking for ways to save their taxpayers money, while ensuring citizens’ needs are properly met. The Leasing Group has assisted many municipalities with leasing everything from police cars and fire trucks to street sweepers and garbage trucks.

7. Manufacturing and industrial plant equipment. An especially costly category of equipment is in the manufacturing and industrial sector, making it a popular equipment leasing category as well. A manufacturer can lease revenue-producing equipment such as stamping and forming machinery, forklifts, welders and conveyor systems. Leasing is a popular choice when a company does not want to use up its operating cash.

The Leasing Group has years of experience with negotiating lease financing on all of the most popularly leased items. If you need to lease any of the above equipment, contact us at (502) 547-2773 to find out how we can help.