Daily Loan Tips Equipment Loans and Leasing

Welcome to the Daily Loan Tips Equipment Loans and Leasing page! Here, small and home business owners can learn about different kinds of loans and leasing arrangements for equipment and electronic devices.

What Kinds of Equipment Financing is Available?

There are basically two options for a business looking to lease equipment: a true lease or a finance lease. With a true lease, the company will make payments throughout the duration of the lease, but when the it has expired the company does not own the equipment. If the business owner wants to eventually own the equipment it is leasing, then it could opt for a finance equipment lease.

What are the Payment Options for an Equipment Loan?

There are several ways to make payments on an equipment loan or lease:

• A Skip-Lease: There is a set period of time throughout the year when the company can withhold payment without incurring penalties.This is best for seasonal businesses.
• A Step-up Lease: Here, payments are low at the beginning and then increases as more capital comes in.
• A 60-90 Day Deferred Lease: This payment arrangement allows a business to skip the first two to three months of payment so that it can build up its capital.

Remember to Negotiate on the Terms and Conditions of the Equipment Lease or Loan

Many equipment vendors and financial institutions offer a wide range of equipment and soft assets for leasing. Thus, you should do some research before you decide to lease from a particular place, you may even be able to barter down either the purchase price or the leasing rate.