Equipment Leasing Finance - Part 1

Los Angeles, CA (PressExposure) December 03, 2009 -- To run any business is an attractive project but to rise funds for establishing it require efforts. Most of the time, we have seen that small business starts without any funds. They do not have funds for the latest equipments and therefore are not able to make it even through the first few years of operation. As first few years of any business are crucial for its owner, one can only make through if there is a full proof business plan with a good cash flow.

The best possible way is an equipment leasing finance company. Internet is the tool that is at your disposal every time. There are thousands of companies that provide equipment leasing, used medical equipments and computer equipment leasing. Research well and shop around to get the best deal. Before plunging into the deal makes sure that the company you have chosen provides financing for your industry.

The different types of finance provided by equipment leasing finance company are lease, structured finance and loans. In this article we will be dealing with five types of finance leasing and rest of them in part 2 of this article:-

1) Capital Lease or Finance Lease: It is a type of lease that is used for commercial arrangements. Sometimes referred to as a conditional sales contract. It combines some of the benefits of leasing with those of ownership. This lease allows acquiring full ownership of the equipment at the end of the lease. The terms and conditions for the acquisition of the equipment exist in the agreement itself.

2) Conditional Sales Lease: It is non- true lease where after paying certain amount to the manufacturer, lessee acquires the equipment for a shorter duration of its economic life. Certain amount of interest is also associated with it. The equipment can be purchased after the lease ends for paying a nominal value.

3) Tax Lease or True Lease: This type is lease is valuable for companies that are vulnerable to technological obsolescence, such as computers. It has lower monthly payments that can be claimed as tax deductions. At the end of the lease, you can purchase it, continue the lease or return it to the lesser.

4) Operating Lease: This type of lease allows the lessee to have the right to use the equipment without any right to own it. If you want to have the ownership at the end of the lease, the terms and risk involved are much which wouldn't be acceptable. But it provides greater flexibility as well as cut down the expenses of the running business.

5) Municipal Lease: This type of lease allows the municipal funded equipment to be owned for certain duration by the state government or a company. It is a financial agreement between the both parties.

About Lease with Crystal

Sanjana Sharma is the author of this article. For more information about medical equipment leasing companies [], used medical equipments and computer equipment leasing please follow this link commercial finance [].

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Press Release Submitted On: December 03, 2009 at 1:59 am
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