WHY YOU SHOULD LEASE EQUIPMENT INSTEAD OF BUYING IT

Equipment purchases are a risky investment for any business. Your company has to pay a large down payment to procure expensive, non-returnable furniture, machines, and other necessary items. 

Then, after a few years of wear and tear, you have to do it all over again. This risk is something many small business owners aren’t willing to take. Instead, they opt to lease equipment. Here’s why they do it and why you should consider it, too.

 CMS Funding also works on working capital loans for startups, healthcare financing, business expansion loans.

Commercial Financing Company - What You Should Learn

The term Commercial Finance is referred to the type of financing which deals with the function of offering loans, funds and leases to businesses and entrepreneurs. A Commercial Finance Company can be defined as the financial institution that acknowledges only time deposits and sanctions asset-based loans and also ensures leasing arrangements. Basically, asset-based loans are those required for buying inventory, machines, equipments and vehicles. Commercial Financing is usually offered by a bank or any other leading commercial lender. CMS Funding is one such commercial lender that allows for various modes of commercial financing. 

Commercial Financing Company

The Commercial Financing Companies do not accept deposits from the public hence they are free from the stringent regulations as associated with the banks. Instead, these commercial financing companies earn capital either from their own lending or from parent companies, which is later used to obtain loans from. Most of the financial companies ensure loans to their clients on the basis of the assets promised by the consumers as security. Are you looking for business expansion loans? Look at the before the discussed site.

Generally, banks offer a lower interest rate, higher flexible terms and loan amounts with respect to the commercial finance companies. But still, people opt for financial companies rather than banks. The major reason behind this is that banks are extremely rigid with their credit. Only 20% of businessmen and entrepreneurs apply for loans through banks, the remaining 80% of people apply via commercial financing companies.

CMS Funding is a type of commercial financing company that provides loans to commercial businesses or aids financing the sale of a company’s products to its consumers. However, all companies do not lend only to the business commercials, some also lend to the customers. CMS Funding is one such financing company that provides funds, loans as well as leases to the commercialists and also to the consumers.

Commercial Financing Companies like CMS Funding offer loans for the consumers and usually have a higher interest rate than those provided by banks. It is due to this loan interest that serves as the revenue of the finance companies. People having poor credit history ask for loans from finance companies. These consumers provide security so as to secure their loans and generally promise to provide the finance company with valuable personal assets, in case the loan is not repaid. However, CMS Funding doesn’t demand collateral support from their clients.

INTRODUCTION TO CMS FUNDING:

Since 20 years, different forms of Equipment Leasing and Commercial Financing Services are being offered by CMS Funding. Since then, the management team consistently helped large and small businesses to gain the capital essential to augment their productivity and sales, at the same time keeping a check on the bottom line.

Customer service and assistance is our first and foremost priority. We aim at helping our customers by offering them with the best and quickest leasing and commercial financing services. CMS provides an extensive array of a trained and skilled staff of professionals who are present there to confer and facilitate vendors and lessees with their financing questions. 

CMS Funding serves its customers with the following benefits:

·         No collateral is required

·         Loans available at lower rates

·         The approval rate is quite high

·         No obligation application

·         The process of approval is very rapid and trouble-free

·         Terms may extend from 6 to 24 months

·         Varieties of options are provided, amongst which you can choose the most suitable one for you

·         Automated payments

·         Funding is provided within 24 to 48 hours

·         High-quality customer service

CMS Funding generally provides with working capital loans, which can help recover businesses of all sizes from low cash flow. We provide working capital loans as an unsecured debt; hence you need not provide any traditional collateral or security. CMS Funding is considered to be one of the most popular and global Commercial Financing Companies.

A GLANCE AT CONSTRUCTION EQUIPMENT LEASING

Equipment Leasing is a form of utilising machinery, vehicles or other equipments on a rental basis. In other words, Equipment Leasing is a system in which varieties of equipments are lent to companies or industrialists for a particular time period in return of regular payments.

If you feel that the equipment which you require will become obsolete soon, then there’s no need to buy it. In lieu you can opt for equipment lease and make use of the required equipment on a rental basis. Mostly, equipment leasing agreements last between two and seven years. In this way, you can certainly outlast the equipment’s original value. Hence, this a great way to keep equipments cost down. Are you looking about used equipment financing?

For instance, if you are just starting off and need one computer then it is more feasible to buy one. Otherwise, if you are planning to open an office that will consist of numerous employees and require several computers, then you should look for equipment leasing.

There are few other types of equipment leasing; some of them are listed below:

·      Construction Based Equipment Leasing:

Heavy equipment, commonly known as construction equipment is a specially designed machinery for performing operations related to construction, used for different functions such as drilling, hauling, excavating, paving and grading. It also includes the vehicles used in construction works like truck, crane, cement mixer etc.

·      Machinery Based Equipment Leasing:

Machinery based equipments can be of different types depending upon the type of industry they are being used. They can be the machines used in manufacturing process, dental operations, auto-repairs and so on.

·       IT Based Equipment Leasing:

Information Technology Equipments (ITE) includes devices that have a key function associated with the collection, transfer, storage, or processing of data. IT equipments have a high demand in small as well as large businesses. The IT devices are computers, telecommunication equipments, printers, keyboards etc.

·      Others:

Various other kinds of equipment leasing involve the equipments used for farming, office furnitures, restaurants, etc.

CMS FUNDING:

Past 20 years, different Equipment Leasing and Commercial Financing Services are being provided by CMS Funding. The management team reliably helped large and small businesses to obtain the capital essential to increase their productivity and sales, at the same time keeping an eye on the bottom line.

Customer service is our first priority. Our aim is to help our customers by providing them the best and quickest leasing services. Other than equipment leasing, we also provide financing services. CMS provides a wide range of trained staff of professionals who are available to confer and aid vendors and lessees with their leasing questions. 

But why choose CMS Funding for equipment leasing?

First and foremost CMS Funding is one of the leading providers of Equipment Leasing and corresponding services across different countries in the world. Other CMS Funding competitors serve only to the local businesses but we provide our services globally. We have worked with different types of businesses, starting from pizza shops to construction and manufacturing companies. For us customer contentment is of highest priority. The application process for equipment leasing is quite easy and as soon as we receive your application we will contact you within 24 hours.  You can have a look at the following kinds of solutions which are offered by CMS:

• Up to $100,000 with a simple 1-page application
• 24 to 84 Months time period
• Master Lease Lines of Credit
• Credit approvals within 24 hours
• Availability of prefunding
• Flexible terms and deferred payment options
• 100% financing, including soft costs
• Operating & Finance Leases
• New or pre-owned equipments can be purchased
• Acquire commercial vehicles
• Remodel or improve your location
• Upgrade technology, software and more

CMS Funding provides leasing on different type of equipments, some of which are listed below:

1.      Construction based vehicles

2.      Dental equipments

3.      Equipments required in manufacturing processes

4.      Office furnitures

5.      Auto-repair

6.      Equipments needed for farming

7.      Restaurant equipments

8.      IT/ Computer equipments

No matter what industry you’re in, equipment leasing can be extremely helpful- especially as you scale to bigger growth.

Where Should We Go For Commercial Financing And Why?

When you begin with your business, you may have come across 'commercial financing’. Many people from the industry have a tough time determining what commercial financing is. There are several options available to people, and they can eventually move forward with it. Ultimately, getting commercial finance for your business can give it up a boost and allow you to move forward.

What is commercial finance?

The concept of commercial finance is rather an easy concept. Commercial finance refers to the different kinds of loan, one gets on the business for the financial products. These may be given for short and long term as well. A loan provider gives this out to the business owners. The owner requires to pay back the money with a certain amount of interest.

Types of commercial financing

The commercial financing loans are usually available in three types. These include the following.

Short-term loans

In the case of short term loans, the interest may be higher. These kinds usually consist of trade credit and business credit cards

Medium-term loans

In some instances, you may not require to pay back the lender. These are medium-term loans and may require longer than usual to get the loan. Crowdfunding is one such prominent kind of medium-term loan which does not require the person to pay back. There are various crowdfunding websites through which you can get help. Another prominent option is the bridging finance business loan.

Long-term loans

In this case, you are given the liability of long-term loans thereby giving you the option to pay a low rate of interest. The long-term commercial financing usually includes a wide range of options such as overdrafts, invoice factoring, asset-based lending, commercial mortgages, invoice discounting and more.

Why should you choose commercial financing?

Before beginning with what commercial financing is, it is necessary to determine for whom the commercial financing is. Every kind of business, small to big can apply for commercial finance. The start-up businesses too can apply for the commercial finance. Moreover, there are online systems too which can apply for the loan. However, you need to be very specific about your business to offer the best deals.

The businesses can apply for commercial finance if the growth in business has become stunted. Most of the time, the businesses have a tough time in growing their business and the reason happens to be funding. In such cases, commercial financing can prove to be effective and helpful.

The commercial finance helps the business of all sizes to grow and reach their targets. They help the companies to produce their business and consider reinvestment of the cash. Basically, this helps the business to get the capital and eventually increase the business. This kind of business is the best-dressed for the small and medium-sized firms.

The scenario of commercial financing has changed over time. Earlier, only banks were providing the commercial financing, but nowadays alternatives have come up. Sometimes, the bank tends to reject the loan applications but the remaining loan applications can help the business to grow.

Therefore, business owners have a lot of options in today's generation. If you want to see a growth in your business, you need to look around to determine the best criteria for your business.

Where can you get commercial financing?

There are various sources from which you can get commercial finance. Earlier, only banks were the only potential providers for loans. However, now a number of other alternatives have come up and people have been providing commercial financing loans. These lenders, before providing the loan check for the credibility of the business.

Commercial financing can play an important role in boosting up your business finances. You can consider getting the loan from experts after issuing all your papers. Before getting the loan, you should prefer checking with the different sources. Doing proper research can prove to be extremely effective.  

A Guide to Machinery Leasing in USA

When you are planning to broaden your business then you will surely think of bringing new technology into the business. But, new technology is expensive and it is not everyone’s cup of tea to buy it, therefore there are other option to go for. Leasing is one of them. Leasing provides you the convenient option of paying the return amount in small fragments on monthly basis for few years, instead of paying it in bulk at once. As the lease ends, you can return the item or buy it at a price those factors in appreciation and the amount you paid through the lease.

Few benefits of machinery leasing are:

•  You don’t have to do down payment with every lessor, some don’t require it.
• If you need the same equipment for longer period of time, then, leasing is better option.
• Leasing of equipment are eligible for tax credits. On the basis of your lease, you maybe able to reduce your payment amount as business expense. You can take help of Section 178 Qualified Financing.
•   You won’t need to pay for maintenance of the item.

Before you start the process, answer the following question:

•  What is your monthly budget?
• You may don’t have to pay huge amount for leasing but there is a fixed amount that you have to pay every month and budgets are mostly tight and slightest change in it can bring your budget on edge. So, it’s better to step into this relation with proper preparation.
•  How long will the equipment be used?
•  If you need the machinery for short term use then leasing is the best option to go for. But, if you need the equipment for three or more years then loan or credit maybe more beneficial.
•   How quickly will the equipment become obsolete?
•  You should consider obsolescence before choosing leasing as some industries witness technology becoming outdated while in some industries it doesn’t. 

 The equipment that qualify for leasing is unlimited but there are few conditions to notice:

·         Hard assets- The item that you lease becomes ‘hard assets’. In other words, Hard assets is anything that can be listed under personal property and not attached to real state, permanently. And the soft assets don’t qualify for lease. Soft assets are warranties and training programs.

·         Purchase Price: Leasing lets the business to obtain machinery and equipment that has high dollar value. This ranges from smaller items like kiosks and telephones to costly single items like Heart monitors.

Purchasing vs Leasing

There are times when purchasing is more beneficial than leasing. So, consider the following points:

• ·         The amount to be financed
• ·         Purchase price
• ·         Equipment usage
• ·         Ownership and maintenance costs
• ·         Tax and inflation rates
• ·         Annual depreciation
• ·         Monthly lease costs

If your equipment needs the regular updating then leasing is better option like Electronic devices and computers. Lease provides you the freedom to obtain latest technology and you have fixed monthly payments that you can budget for.

Leasing provides various range of options for your business in terms of items accessible to them.  With leasing, it becomes possible to include the expensive technology that was not coming in your budget before.

But, in leasing you need to pay the interests and it can be more expensive in case you were going to buy the item outright. At times, lenders enforce some specific terms. It may result in additional cost of lease if the period of lease extends the time period that was already decided. 

In such a case, you might end up with monthly payment with storage cost attached to unused equipment.

When choosing the machinery to lease in USA, make sure to comply with the rules and ensure that you only pick the best ones which can be used for a longer period of time.

Manufacturing equipment financing for new and used equipment

The manufacturers often have a tough time dealing with the rising prices of the equipment. If any of their equipment is to expire, they will need to purchase the new ones. As a result, this can be extremely exhausting for them. However, there is various manufacturing equipment financing companies that can offer the best of all services. They allow these manufacturers to take both the new and used equipment at very many affordable prices. 

Immediate purchase

As a manufacturing business, it is your need to have the equipment available with you all the time. However, if your old equipment are breaking down, you may not be able to cope up with the daily requirements. As a result, you need the equipment to be available with you all the time. You can consider the manufacturing equipment financing for your convenience. These equipment financing options allow you to purchase the equipment right now rather than waiting for later. Moreover, this proves to have a positive impact on your business. Your business will see increased revenues and better profits in the coming times. 

Flexibility

The equipment financing for manufacturing businesses can prove to be convenient in a number of ways. It helps the owner to ensure the term based on their requirements. These may include tax planning, cash flow, and even accounting strategy. As a result, you can offer the return assets, earning reports and so on to ensure the flexibility of the business. These are very much convenient when you want new or old equipment.

Increased competition advantage

The manufacturing equipment financing companies offer financing options for the businesses to purchase the equipment. The market is full of the user equipment which is very much convenient to use. As a result, depending on your loan amount you can either get new equipment or an old one. However, this equipment can further play an important role in boosting the competitive advantage. This further ensures improved brand value that can drive in a number of customers accompanied by sales and profits. However, if you do not buy new equipment, it may have a negative image on your brand and reduce your popularity.

Tax advantages

These manufacturing equipment have the benefit of tax deductibles. Apart from that, it also gives the option of depreciating the value of the equipment. The time for depreciation will be affected by a number of factors such as time of purchase, type of equipment purchased and more. 

Lesser risks

When you begin with a business, you do have enough capital to purchase your equipment. However, this can prove to be harmful if you do not have a proper strategy. You need to be very careful while buying new equipment. Even when you have the amount, you should refrain from spending it all. Instead of it, you can save some amount by taking finance option. Apart from it, if you are little unsure of the equipment offering better ROI, you should go for equipment financing. Manufacturing equipment financing can help to lower the risk in a number of ways. As a result, if you are just a starter, who does not want to face much loss, equipment financing may be helpful. 

Protected against inflation

If you are in need of any equipment, you can buy it immediately. This will prove to be quite fruitful. There are high chances that the price of the equipment may increase in the coming times. As a result, it can prove to be extremely expensive on your business. The increasing demand in the market also contributes to the price hike. 

Better purchasing power

Having equipment financing ensures that you have enough funds for getting your hands on the products. This ensures that you can close the deal for equipment at much better rates. You can choose to negotiate and purchase the equipment at an affordable price.

There are various aspects of using this manufacturing equipment financing. You need to consider a number of things before applying for such a financing option. 

Equipment Leasing Tip for Startup Businesses

If you have a startup business, you may have a tough time applying for loan. Since you will be beginning with a business and won't have any credit score, there are high possibilities that the bank will reject your application. Moreover, it is difficult even when you have no credit history for the bank. As a result, if you need money for your business, you will need to find some other alternative. Most of the businesses these days need financing to get the equipment. If that is your primary requirement, you should totally skip the bank loan ideas. There are various equipment leasing companies which may offer you the money for same.

Who can lease?

Equipment leasing has become one of the most famous and prominent businesses among everyone. Established and startups can apply for transportation equipment leasing. This is because it is convenient and very easy to apply for. Nowadays, the large scale industries as well as the small businesses can easily get their lease. However, one needs to be aware of what the requirements should be.

 

Why Lease Equipment?

If you are a new business, you may find it tough applying for a loan. If the sole aim for taking the loan is to buy equipment, you may need to face a lot of delay with business even when your loan is approved. The equipment leasing option can help to stay protected against the risk of delay. In case of bank loans, one may need to wait for long time for approval. However, in many cases such as for start-ups the bank may not approve the loan too. But, when you visit the equipment leasing companies, you may get your lease quickly and more effectively.

Transportation equipment leasing proves to be most beneficial for the transportation businesses. This is because the owner need not pay any down payment. Apart from it, the owner is required to pay monthly installments which makes the procedure a very cost-effective one. There is no necessity for the loan installment to be monthly. Depending on the financial strength of your business, the equipment leasing company will offer you flexible payment terms.

Equipment leasing is the most beneficial for small businesses and entrepreneurs who have a budget. In this case, you will have to send less capital and can consider spending in other expenditures such as hiring, advertisement and more.

Preparing Paperwork

You will need to contact the equipment leasing companies to determine what documents you will be leasing. The document requirement usually varies from one company to another. Some of the leasing companies accept the written documents while some require you to provide tax returns, financial statement from the last year.

Be very specific about your business needs when you are offering the loan proposal. Apart from that, you should also be very specific with your reason that why you want the lease.  Apart from that you should also determine what equipment you will be requiring and all the necessary details which will ensure you better loan and at an effective rate.

Check your Credit

Although this may not be valid in all cases, in some arenas the companies will require you to have a strong credit history for faster financing. As said, there are other equipment leasing companies that do not check your credit history before offering you to the loan. Even if you have had a bad or poor credit history, your loan may be granted in an effective rate.

In some of the cases, the business owners who were discharged will bankruptcy can be considered to be eligible for loan. The equipment leasing company may Grant their loan as well. Nonetheless, if you have had a bad credit, you will need to submit a written application for the company for a better reason. Apart from that, you should also be offering the letter about your credit history and what the reason should be.