Equipment Leasing provides a flexible, creative alternative to buying as a way of obtaining the necessary equipment to run a cash-short business. Leasing is used for a wide variety of equipment ranging from airplanes to vehicles to kitchen equipment for a restaurant to computers.
In the typical equipment-leasing arrangement, an equipment-leasing company (the lessor) buys equipment or other fixed assets. It then executes a contract with the entity (the lessee) that will use the asset. In return for the use of the asset, the lessee makes fixed payments to the lessor for a specified period.
$3,000 to $10,000,000
We offer Equipment Leasing and Finance in 3 funding levels:
- 1 – Application Only Up to $250,000 Basic Financials. Approvals in 24 hours or less.
- 2 – Middle Market $250,000-$500,000: Typically take 3-5 days and offer excellent rates and up to 84 months to repay. Generally, a company needs two years in business to qualify for A-Tier pricing.
- 3 – Large Ticket $500,000 to $10,000,000: Requires full financials including Tax Returns and interim Finance Statements.
We can fund based on Credit, or Cash Flow, or Equipment Values to provide your business the funds you need based on your strengths.
The vast majority of businesses in the United States lease equipment at some time or another. At AMK Funding through its Affiliates, we have lease programs to fit every need. Our clients enjoy the most comprehensive range of services and competitive terms offered. In any Commercial Equipment Lease, there are many options available to tailor it to your needs. We will clearly explain and review your options with you and help you decide which is best for you. The most common options include:
- $1.00 Out Leases
- 10% or 20% Residual Leases
- FMV Leases
- Multiple Payment and Down Payment Options
- 24-84 Month Terms
Specialty Lease Programs
Sale & Lease Back
A leaseback is a useful tool for companies needing working capital who do not want to use their bank lines or have credit issues. With the Leaseback program, we can use the equity in your existing equipment to give your company the working capital it needs. We buy your equipment and lease it back to you. When all the payments are made, you own the equipment again.
Startup Program
A business less than two years old is generally considered a Startup. Most banks have severe limitations on extending credit to a Startup. Ironically it’s the time businesses are most in need. A new business needs the ability to build on opportunities and we can provide the capital to enable them to grow with our Startup Equipment Lease Program.
B, C and D Credit
The economic conditions of the last few years have caused many businesses financial suffering and many times that stress has spilled over into the owners’ credit profiles. More and more businesses fall into the “B” credit category. Experts don’t expect this to change very soon. Even after the economy recovers, it takes time for the balance sheets and credit bureaus to reflect stability. The picture isn’t any better for C and D credit tiers. There are good reasons we are more effective than other finance companies with B, C, and D Credit:
- AMK Funding through its Affiliates has always been an expert in non-standard finance programs.
- 30 years of non-standard loan origination, underwriting, back office, due diligence, loan structuring, and collection.
- Strategic partnerships with founders across America servicing a full spectrum of credit ratings and niche markets.
- Access to non-standard capital resources capable of structuring “outside the box” solutions.
- Alternatives to traditional Credit Based Leases including, Collateral Based Leasing and Cash Flow-based Leasing. With some of our programs, credit scores have no bearing on underwriting. Our market position enables us to analyze business needs and structure finance offerings that are as appealing to funding institutions as they are to our clients. We can provide finance for the distressed business and can give problem credit clients a “second chance” to capitalize on their businesses and rebuild their credit.
TRAC Leases
An acronym for Terminal Rental Adjustment Clause, this is specifically designed for over-the-road vehicles and trailers. A TRAC lease guarantees your business a pre-set buy out price for the vehicle when the lease expires. This type of equipment lease is a great tool for business owners who want the option of buying the vehicle for a pre-determined price at the end of the lease and typically offers lower payments than a standard lease while providing certain tax advantages.
Government and Municipal Leasing
We can provide lease financing to any government or municipal entity with guaranteed approval. The rate is determined by the rating of the municipality or government agency. We can finance any entity controlled federally, by any state or by any local municipality including Armed services, Public Schools, Libraries, Police and Fire Departments and more. Please contact us so one of our finance specialists can discuss your specific needs and how we can arrange the equipment financing your company requires.
Why Lease?
80% of U.S. businesses, from Fortune 500 to the local family business, lease some portion of their equipment. By leasing your equipment, there is less impact on your cash flow, lower fixed monthly payments, preserves existing business credit lines, helps eliminate equipment obsolescence and has significant tax advantages. We can structure a lease for virtually any type of commercial equipment, including software and installation costs. A Business Equipment Lease from AMK Funding through its Affiliated Program is the right choice.
The monthly lease payment will usually be lower than the payment required by other methods of financing.
Businesses need to preserve their capital to fund growth, expansion, and operations. Growing businesses need cash to expand and purchase new equipment. Established businesses need cash for operating capital, expansion opportunities, and replacement of old and obsolete equipment. With new equipment leasing, your upfront costs are minimal. You get the equipment you need and comfortably spread your payments out over time.
Business or Commercial Equipment Leasing has no impact on your bank credit lines. Protect your borrowing power for short-term capital needs for operations and opportunities.
Technology is always advancing. Equipment you purchase today may be obsolete three years from now. New equipment leasing allows you the flexibility to maintain a competitive edge by giving you today’s best technology and allowing you to upgrade when the equipment has outlived its advantage.
Unlike bank lines of credit that usually have variable rates, lease payments are fixed. In the 1980’s rates rose from 9% to over 20% in one year causing severe hardship for many businesses. In 2008 and 2009 the financial markets were in turmoil and are still not completely stable. By choosing to lease, you protect yourself from market fluctuations outside of your control.
Prudent businesses take advantage of the tax deductions for equipment as set out in section 179 of the US tax code. Lease payments are generally reported as line item expenses on your P&L statement instead of being depreciated over long terms. And since lease payments can usually be treated as a pre-tax business expense you can reduce your taxes. Paying cash for equipment automatically adds 30-40% to the cost when you realize that cash = profits and taxes are paid on profits.