- Commercial Equipment Leasing and Financing
- We offer a wide range of lease and loan options for the acquisition of a variety of equipment, and we customize structures and payments to meet customers’ special needs.
Lease options:
- True or FMV Lease (Fair Market Value Buy Out) – At the end of the term of an FMV Lease the customer has the option of:
- Buying the equipment for its then Fair Market Value,
- Continue leasing the equipment for a term acceptable to lessor, or
- Returning the equipment to the lessor subject to certain restrictions
- Buying the equipment for its then Fair Market Value,
If the FMV Lease also qualifies as an Operating Lease, the sales and use tax (or Impuesto Sobre Venta y Uso, or “IVU” in Spanish) is levied against lease payments as they come due instead of against the total equipment cost at the inception of the lease as is the case with all other types of leases and loans. At the end of the lease term the customer has the flexibility of retaining the equipment by either purchasing it for its then fair market value or by extending the lease term, or they may choose to surrender the equipment subject to certain restrictions and upgrade to the latest technology.
- Lease Purchase ($1.00 Buy Out) – Under a Lease Purchase structure, the customer has the right to own the equipment at the end of the lease term for a nominal amount of $1.00. In essence, the customer maintains an investment in the equipment but also assumes all risks related to the value of such investment. The customer is responsible for selling the equipment if it does not wish to retain it. This lease is also commonly known as a Capital Lease.
- Sale-Leaseback – A Sale-Leaseback is offered to customers that already own equipment with value that far exceeds the amount of debt owed, if any, against it. The value of used equipment is determined by a qualified appraiser acceptable to Acrecent. This lease structure allows the company to free-up needed capital without having to use other collateral.
Loan options:
- Term Loan – A Term Loan allows the customer to retain title or ownership of the equipment financed, subject to a lien from the lender.
- Line of Credit – A Line of Credit or credit facility is offered to dealers or vendors of commercial equipment for the acquisition of equipment for sale (“equipment inventory”). These credit facilities are offered for initial minimum purchases of $250,000 and the amount advanced by the lender (or borrowed by the customer) is based on a percentage of the value of the equipment inventory (the “Borrowing Base” formula). With the exception of periodic principal payments (“Curtailments”) that may be required if equipment remains in inventory beyond a determined period, while the equipment is held in inventory the customer only makes interest payments. This credit facility provides dealers or vendors the necessary working capital to increase sales. These credit facilities are also commonly known as Floor Plan financing.
Small-Ticket Program
We offer small-ticket financing for equipment purchases up to $50,000. Financial statements are not required. The only customer requirements are the following:
- Completion of credit application
- Minimum average bank balance of $5,000 (per 3-month bank statements)
- Minimum of 3 years in business
- Minimum credit score of 680
- Maximum lease/loan term of 48 months
- Personal guarantees a must
- Equipment leased/financed must be essential to customer operation
To download our Small-Ticket Application choose PDF or Word.
Equipment Insurance – Available through Universal Insurance. We finance 100% of the insurance premium for any equipment lease or loan that is funded by us.
To open a downloadable PDF file your computer may need Adobe Reader.
