What Is Equipment Lease Financing All About
February 28, 2010 8:14 pm BusinessWhen a business wants to acquire assets for its operations, it can either pay cash or finance the purchase in some manner.
There are really two options for financing. The traditional form of debt financing is a loan provided by a lender. The second option is equipment lease financing where the asset purchase is actually made on the business owner’s behalf by an equipment leasing company. This ownership position provides a stronger security position for the leasing company, allowing them to provide high levels of leverage, sometimes in excess of 100%o the asset cost if there are related costs such as delivery and installation.