Understanding the reasons why you should pursue leasing your equipment is the first place to start. With our decades of combined leasing industry experience, we have compiled this easy-to-use tutorial to help you understand the benefits of leasing. As always, you may visit our Application Center or call us at (877) 4-STRADA for assistance.
A typical lease finances as much as 110% of the equipment cost because it usually picks up delivery, installation and other soft costs. It only requires one month’s rent in advance; there is a UCC filing only against the specific equipment leased; and the leasing company won’t bother you for the next five years as long as you make your payments. At the end of that time, they will sell you the equipment for its then current fair market value (probably minimal); and you will have expensed the payments directly for tax purposes.
Furthermore, Strada Capital will vary lease payments to match your cash flow curves. If you are in a seasonal business, that can be a crucial benefit to leasing. We will also match the payments to the logical period of time that you will be using that equipment before it is necessary to upgrade; and will allow you to upgrade without penalty. These are just some of the “custom” features available in our leases that usually aren’t in a bank lending agreement, and they affect your net cost. So, when considering financing, look beyond rate alone to the underlying considerations. You may find that, sometimes, “it costs less to pay more.”