One of the questions I am frequently asked is “what types of avionics equipment will Madison Capital finance?” We provide lease financing for a wide range of new and used avionics equipment ranging from 5k to 500k. Some of the equipment includes WAAS-GPS, transponders, data comm, displays, antennae, ads-b(out/in), rnp/rnav, and installation/certification.
Another question we are frequently asked is the difference between a loan and a lease? In summary, a loan is the borrowing of money while a lease is a term rental agreement for the use of specific equipment. As a means of financing, loans generally involve a lot more paper work and can take much longer to complete. Lease financing is generally more flexible than a loan and can be completed in a few days without some of the restrictions loans can dictate. Some of the benefits of lease financing include: conserves working capital, preserves bank lines of credit, only pay for the portion of the asset used, helps with budget planning and helps avoid technical obsolescence.
You have several options at the end of a lease, depending on the type of lease, including the following:
•Buy the equipment for $1.00
•Purchase the equipment for fair market value
•Continue to rent the equipment month to month or for a specific period of time (i.e. 3 months, 6 months, one year, etc.)
•Return the equipment to the lessor at the end of the term
It can be beneficial to establish a master lease agreement whereby additional equipment can be easily added to a lease in one document which will govern subsequent transactions. Under the master lease, the business will have schedules for each “batch” of equipment they finance over time with the lender. Schedules can be for different terms depending on what is appropriate for the heavy equipment being financed. If there is additional equipment or vehicles needed, you can simply add it to the master lease.
For more information on our avionics lease financing solutions visit here.