Commercial equipment financing is becoming the best financial option for businesses of all sizes.  Yet, many organizations don’t fully understand all their commercial equipment financing options.

1. What is a lease?
2. Is a lease better than buying outright?
3. What type of equipment can be leased?
4. How will I know if leasing is the right option for my business?

1. What is a lease? – With a lease, you pay a certain monthly fee for the rights to use the equipment. At the end of the lease, you can return the equipment or choose to buy it outright for a pre-determined amount. Leasing is a great way for businesses to start, grow or expand to get the equipment they need for their business, whether it be a dishwasher for a restaurant, dump truck for a construction firm, machine tool or a point-of-sale system for a new retail outlet. With most leases, you get a full range of lease options such as purchase options at the end of the lease, lease terms, and payment terms.
2. Is a lease better than buying outright? Just like you don’t pay your employees salary in one annual chunk, leasing allows you to spread out the payments for the asset as you use it (and consequently earn income from it). Leasing can even allow you to start generating income from the use of the equipment before you even make your first payment.
3. What type of equipment can be leased? Almost any type of commercial business equipment can be leased! At Taycor, our leasing program includes computer equipment and software, video and film equipment, office equipment, commercial     equipment, office furniture, industrial equipment, materials handling and construction equipment.
4. How will I know if leasing is the right option for my business? That’s what Taycor is here for, to help you evaluate all your commercial equipment financing alternatives. Leasing could be a good solution for your business if:

• The equipment you need could be obsolete in a few short years.
• Your company is interested in tax breaks.
• You would like to better manage your cash flow.
• You would like to pay for your equipment as you use it.

Talk with the friendly professionals from Taycor Financial and let them walk you through all your commercial equipment financing options. Taycor Financial should be your number one source for all your commercial equipment financing. They specialize in providing accessible and affordable commercial financing alternatives and have a long history of experience serving businesses in a wide variety of markets.
Call today to make your appointment!

Equipment Leasing Questions and Answers. Learn more about the structure and end of term options for our more popular equipment leasing programs.

1. How long does the equipment financing process take?
2. Can you lease or finance used equipment?
3. What happens at the end of the lease term?
4. What is the interest rate on the equipment lease?
5. Can the equipment lease be paid off early?
6. Will my commercial lease payments be tax deductible?
7. Will the lease payments be fixed for the entire term?
8. What is the minimum size lease transaction?
9. How long do we have to be in business?
10. How much of a down payment is required on the equipment?

1. How long does the equipment financing process take?
Requests for up to $150,000 will be approved within two hours after receiving a one-page credit application. Documents will be sent over-night, hand-delivered, or e-mailed to the customer, and a Purchase Order is immediately faxed to the vendor once signed documents have been received.

2. Can you lease or finance used equipment?
Yes. We finance all types of new and used equipment.

3. What happens at the end of the lease term?
There are a variety of end of term options available to you. These include Fair Market Value, $1.00 Buyout and other Fixed Purchase Options.

• Fair Market Value (FMV)
  This plan is particularly beneficial to those concerned with technological obsolescence. Our Fair Market Value lease is designed for our customers who expect the value of their equipment to decrease quickly, or will want to upgrade their equipment at the end of the lease. At the end of a FMV lease, the lessee has three options: extend the term of the lease, return the equipment, or buy it at its fair market value. With this lease, you generally have lower monthly payments and you can write off 100% of your payments as an operating expense. Please consult your accountant about the tax treatment for your company.
• $1 Buyout
  This option is for those who are fairly certain that their equipment will retain its value. Therefore, they plan to purchase the equipment at the end of the lease. When the lease term expires, you can simply purchase the equipment for a $1 (or $101 depending on your state’s tax laws).
• 10% Purchase Option
  For those who like the flexibility of the option to return the equipment or purchase it at the end of lease, but want to cap their equipment buyout at a certain percent of the equipment cost, this is the option for you.

4. What is the interest rate on the equipment lease?
Although a lease is not a principal and interest loan, rates are based on credit history, time in business, equipment cost, lease term and structure.

5. Can the equipment lease be paid off early?
Yes.

6. Will my commercial lease payments be tax deductible?
The IRS will generally allow you to write off 100% of your lease payment if the lease has been structured properly. We always recommend consulting with your tax advisor.

7. Will the lease payments be fixed for the entire term?
Yes.

8. What is the minimum size lease transaction?
$5,000.

9. How long do we have to be in business?
Taycor has a new business program for those companies who have been in business for less than two years. However, most of our leasing programs require a minimum of two years time in business.

10. How much of a down payment is required on the equipment?
Leasing provides 100% financing. Although custom tailored payment plans are available, Taycor typically requires the first and last payment in advance when lease documents are signed.