Equipment leasing is a worldwide industry and a smart decision for any business. Eighty percent of all businesses lease some of their equipment. There are many different reasons why companies lease, but the bottom line is that equipment leasing often makes good business sense. Because we are not a captive lessor and we are not partnered with manufacturers, we are unbiased and can offer advice as to the type of equipment or vendor you choose.
Madison Capital can structure a lease that fits your specific needs. We offer the experience and expertise necessary to determine your best option. Whatever your company needs to grow can be leased at Madison Capital. Our leasing plans enable you to acquire, upgrade or replace equipment easily and economically.
The type of equipment is up to you. Pick any vendor and we will arrange the lease program. Or, ask us to refer a vendor to potentially improve the pricing. Large and small companies have turned to leasing as a means of acquiring the tools necessary to succeed in today’s challenging marketplace. Many smaller and start-up companies lease for cash flow and financial reasons. Leasing permits a close match of rental payments to the incremental revenue produced by the equipment. Companies that lease tend to be more entrepreneurial and competitive.
While banks are an integral part of a company’s financing, leasing companies often are more flexible, less demanding of information, and more customer service oriented. Have your financing approved in advance and your negotiating power soars! We customize plans to best suit your budget and cash flow requirements. We have the ability to fund transactions from our own portfolio or employ the services of one of our many financing partners. This ensures you get the best product and pricing structure for your needs.
Benefits of Leasing
- Conserves working capital
- Provides advantageous tax benefits
- Preserves bank lines of credit
- Lets one pay for the portion of the asset used
- Helps budget planning
- May have lower monthly payments than other forms of financing
- Conserves capital for alternative uses including investments, improvements, marketing and inventory expenses
- Allows purchasing decisions to be deferred by structuring the lease with options at the term-end
- Helps establish a solid trade reference by maintaining, establishing or rebuilding a payment history
- Offers flexibility with either capital, operating, open or closed end leases
- Often requires less stringent credit criteria
- Helps avoid technological obsolescence
Equipment Leasing Facts
- 8 out of 10 American companies use leasing for equipment acquisition.
- An ELA (Equipment Leasing Association) survey cites: “…the top three reasons to lease as the ability to manage company growth, take advantage of the latest technology, and improve asset management.”
- Commercial banks control 41% of small business financing, but only account for about 2% of equipment leases.
- Equipment leasing now accounts for over approximately $1.75 billion in annual financing to businesses, over 1/3 of all investment in equipment.
- Each increase of $1 billion in equipment investment creates approximately 30,000 jobs.
- American companies lease for efficiency and convenience. Ownership is incidental to the decision process.
- Leasing is flexible financing that can be matched to a company’s specific needs.