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LEASE VS. BUY

Conserve cash and working capital! Cash is not tied up in equipment. Instead, cash and working capital remain available for opportunities such as, business expansion, increased marketing efforts or seasonal cash flow needs.

Preserve credit lines! Your existing lines of credit and borrowing availability are left untouched. They are left ready to be used for operational and short-term financing needs.

Ownership can be expensive! Lease payments allow you to use your equipment immediately; your only initial cash outlay is the first lease payment. The new equipment with its operating efficiencies pays for itself as you use it. Profits are generated by the use of the equipment rather than by ownership.

Eliminate equipment obsolescence! Leasing lets you regularly upgrade your equipment to a state-of-the-art level, thus eliminating the inefficiencies and burdens of owning out-dated equipment.

Tax benefits! Operating lease payments may be fully tax-deductible. This alone often times can improve your company's overall profitability.

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SOLUTIONS

$1 Out Option
This lease allows you to buy the equipment at the end of the lease term for the nominal amount of $1. This is the best option for companies that intend to keep the equipment at the end of the lease. In essence, you are building "equity" in the equipment. At the end of this lease you have the option of selling the equipment, trading it in for the latest technology, or handing on to it for a while. We can assist you in selling the equipment at the expiration date of your lease. (This is known as a Capital Lease).

Fair Market Value Buy Out Option
This structure provides you with the option to purchase the equipment at the end of the lease for its then current Fair Market Value. You may also continue leasing the equipment based on that Fair Market Value, or you may return the equipment. (This is known as an Operating Lease).

Deferred Payment
This lease structure is attractive to companies in which the equipment will be used for a project that won't generate revenue for a three to six month period of time. The lease is set up so that the initial months have little or no payments at all.

Seasonal Payment
This lease is designed for those businesses with seasonal cash flows. We can design a lease where the payments are lower during the slow months and higher during the rest of the year.

Step Up / Step Down Payment
This lease is structured so that payments are set up to match a company's cash flow needs. Payments can start low and then increase during the later years of the lease, or payments can start high and then decrease, thus minimizing finance charges.

 

Venture Leases
For start-up companies, Strategic Equipment Leasing offers a lease in which provides 100% financing. We can bundle multiple types of equipment from various vendors into one all-encompassing lease. To qualify, the company should have venture capital backing and enough cash on hand to justify the projections in its business plan. For those companies that do not have a venture capital investor, we can usually structure a lease partially collateralized by cash or marketable securities.

Municipal Leases
This program is available to all city and state agencies such as public school districts, municipal hospitals, police and fire departments. Due to the tax exempt status of the lessee, rates are lower than standard commercial rates.

Equipment Refinancing
This program is designed to help our clients recoup their equity investments that may have been previously financed elsewhere.

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