Equipment Financing
Lakefront Capital offers equipment financing for companies that are looking to expand their capabilities and IT infrastructure. Using a cash flow analysis of your business, and assessing available tax benefits, we will put together a financing strategy that is most effective for your business.
Leasing Benefits
Equipment leasing is one of the most utilized forms of financing for corporations. In fact, over $200 billion in equipment value is leased every year and leasing plays a major role in virtually every industry of operation. Initially, lease financing was of short duration to cover very short term needs. Today, leasing is a continuous and entrenched means of financing the equipment needs of companies worldwide.
Financial Flexibility
Leasing does not necessarily encroach upon existing credit lines and thus adds a layer of potentially off-balance sheet financing that does not necessarily increase the leverage ratios traditionally found in covenants associated with public debt and bank financing. But leasing is not just about financial engineering as many companies would rather invest in assets with the potential to appreciate and lease those that tend to depreciate.
Tax Advantages
As an operating lease is not a purchase, lessees are able to deduct the lease payments on their Income Statements thereby lowering taxable income. Also, lessors can pass along the tax benefits of ownership to the lessee through a lower financing rate.
Lower Financing Rates
Since, with an operating lease, the lessee is only financing at most 90% of the equipment cost and since the lessee is giving up the depreciation to the funding sources, a lower financing rate is usually the result.
Want to learn more?
For more information on how Lakefront Capital can help your equipment financing programs, please visit our contact page.