Commercial Equipment Leasing and Financing
We offer a wide range of standard lease and loan options for the acquisition of a variety of equipment. We can also customize structure and payments to meet your special needs.

Lease options:
  • True Lease (Fair Market Value Buy Out) – Lease equipment and at the end of the lease term you have the option to:
    • Buy the equipment for its then Fair Market Value,
    • Continue leasing the equipment, or
    • Return the equipment

The payments during the term are generally lower than under other lease options or a loan and are fully deductible for income taxes. AA True lease may be considered off-balance sheet, thereby improving the financial condition of the company for financial statement purposes.

Sales and use tax (“IVU”) is payable on each lease payment and not in full at the inception as is the case with other leases and loans. All lease payments are 100% deductible for income tax. This product allows the most cost to be deferred to the end of the lease term when the company has the flexibility to decide to retain the equipment or upgrade it to the latest technology.
  • Lease Purchase ($1.00 Buy Out) – Buy the equipment at the end of the lease term for a nominal amount of $1.00. In essence, the company maintains an investment in the equipment but also assumes all risks related to the value of such investment. The company is responsible for selling the equipment if it does not wish to retain it. (This lease is also known as Capital Lease.)
  • Sale-Leaseback – For company’s with “equity” in equipment (where the value of the investment far exceeds the amount of debt in the equipment). The value of the equipment is determined by one of our qualified appraisers. This product allows the company to free-up needed capital from equipment without having to use other collateral to meet any need of the business.

Loan options:

  • Term Loan – The company retains title or ownership of the equipment subject to a lien.
  • Line of Credit – For dealers or vendors of commercial equipment. A line of credit provides required working capital for the purchase of equipment inventory from $250,000 and up based on the value of the equipment inventory (“Borrowing Base” formula). The company pays interest only for a period of months while equipment is held for sale in inventory. Additional periodic payments to principal (“Curtailment”) may be required if equipment remains in inventory beyond a determined period. This product allows dealers or vendors to have necessary capital to increase sales. (These lines are also known as Floor Plan financing.)

Small-Ticket Program

We provide small-ticket financing up to $50,000. No financial statements are required. The only program requirements are:

  • Credit Application
  • Minimum average balance of $3,500 (as per bank statements, 3-months)
  • Minimum 3 years in business
  • Minimum 640 credit score
  • 48 month term maximum
  • Personal guarantees
  • Essential use equipment only

[Click here to download Credit Application -PDF 20 KB-]

Equipment Insurance – Available through Universal Insurance. We finance the 100% of the insurance premium with any equipment lease or loan.

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