Author: Regents Capital

Acquiring new equipment to start your small business can be very expensive. However, thanks to equipment leasing companies, entrepreneurs have an easier time turning their visions into reality.

Equipment leasing essentially refers to a business renting the equipment they need from a provider. Like equipment financing, it’s an ideal method for small businesses to get started. According to the Equipment Leasing Association, approximately 80 percent of businesses in America lease their capital equipment. Even hospitals and healthcare providers lease their medical equipment.

Find out how this can help your small business, what challenges you can expect and some important questions you need to address when leasing equipment.

Benefits to Equipment Leasing

The following are the main benefits of equipment leasing for small businesses. But these benefits are only the tip of the iceberg – as there are many more depending on your industry and needs.

• No Down Payment

Small businesses can run into cash problems early on because they much of their money on equipment down payments. Oftentimes, equipment leasing has no such requirement, allowing you to spend your resources on other things that your business needs.

• More Credit

You may be considering taking out a loan specifically to purchase equipment, but these can take up a lot of your available credit. Equipment leasing is not a loan and can be taken down as a business expense on your taxes. This means you can spend your credit on other endeavors.

• Easy Upgrading

Another downside of buying equipment is that it can quickly become obsolete, leaving you with a burden rather than an advantage. With equipment leases, you switch to more updated equipment at the end of the lease without spending more money on outdated machinery.

Challenges to Equipment Leasing

Equipment leasing does come with a few responsibilities to keep in mind, notably the following:

• Leasing Periods

Depending on the terms of your lease, you can use the equipment for months or even years. This can be a problem if your small business is in a highly competitive and quickly evolving field. Negotiate the terms of your lease with the provider if you think this could become a problem so you don’t get stuck with outdated equipment.

• Longer Payments

Equipment leasing can be affordable when you look at it on a monthly basis, but the cumulative amount you spend could be higher than if you paid for the equipment outright.

Important Considerations for Equipment Leasing

Before you sign an equipment leasing contract, here are a few important things you need to examine.

• What’s Your Industry Like?

Depending on your industry, the most efficient equipment for your business can change quickly. Purchasing quickly outdated equipment can be a costly blunder, which means leasing is your best option.

• How Small is Your Company?

If your small business only needs a single computer or one piece of machinery, you may be better off buying it. Leasing is the better option if you need more than one piece of hardware and your resources are stretched enough already.

• Will You Purchase the Equipment at the End?

Some leasing contracts allow you to purchase the machinery at the end of the term. If your small business works in a field that doesn’t change its equipment quickly, this is a good move for securing reliable machinery.

Equipment leasing is just one way you can streamline the operations of your small business. Another way you can do so is by partnering with a reliable equipment financing firm, so you can purchase machinery easily.

Experienced Financial Partner

Regents Capital fast-growing independent company focusing on equipment financing for a wide range of businesses. Thanks to their savvy business practices and great company culture, Regents Capital has experienced an average year-over-year growth of 35 percent.

Contact us today and form a reliable partnership to help your business grow!

Even if a business has enough cash reserves to fully pay for needed equipment, it’s often a wiser decision to seek financing solutions and dedicate the cash flow to other pressing areas. In 2018, nearly eight out of ten businesses used at least one form of financing (including leases and loans) to acquire software and equipment.

A staggered payment or a lease agreement makes better sense for many businesses, as it gives them greater leeway to manage their financial resources.

The construction industry is no stranger to these financing methods because it relies heavily on large and small equipment. In response to these needs, finance companies make sure that construction companies are spoiled for choice when it comes to financing agreements.

Expenditure of the Construction Industry
The construction industry sees massive spending; the U.S. Census Bureau reports, during the first six months of 2019, construction spending amounted to about $615.8 billion. Even though figures dropped by 0.5 percent compared to the same period in the previous year, it is still a staggering amount.

Many non-residential construction sectors saw an increase in spending from 2018-2019, according to Fails Management Institute.

Public Safety Construction increased by $10 billion (8 percent)
Transportation Construction increased by $55 billion (7 percent)
Lodging Construction increased by $33 billion (6 percent)
Office Construction increased by $79 billion (6 percent)
A huge chunk of this expenditure can be attributed to equipment purchases. According to the Equipment Leasing and Finance Association (ELFA), construction equipment accounts for 13.9 percent of equipment financing in the USA in 2018. This represents an increase from the previous year’s figures (12.7 percent).

Reasons for Financial Solutions
With massive construction spending, companies are turning to financial solutions to maximize their resources and expand their bottom line.

Some of the most powerful reasons to adopt financing are:

Capital Preservation
Investing in large capital expenditures (such as purchasing heavy-duty construction equipment) entails huge financial risks. For smaller companies, this is not a risk worth taking. Financing mitigates this risk; it eases the worry that the new equipment may not yield the desired increase in efficiency and return on investment.

Better Expense Planning
In the face of budget fluctuations, financing evens out expense planning. Paying for a new piece of equipment is a big financial move, which may not be an easy decision for companies with smaller cash reserves. Financing equipment helps maintain cash flow and greater certainty in budgeting by setting customized lease payments to match cash flow.

Managed Obsolescence
Some construction equipment falls into obsolescence quickly, and financing eliminates the risk of owning obsolete equipment. It is a more attractive choice than investing a huge amount of resources on an item that loses its serviceability a few years down the road.

Construction equipment financing plays an integral role in the financial planning of companies, and they have countless choices when seeking funding for their equipment.

Finding Financing Solutions for You
Regents Capital Corporation provides reliable, innovative solutions for construction firms. From loans and leases, we offer financing for different needs. With a combined 100 years of experience and $150 million in finance transactions processed, expect solutions tailored to your business.

We’ll fund your growth, so you can continue building the economy. Talk to our representative today.

Like any business, construction companies need steady cash flow to support your operational needs and expansion plans. This funding allows you to upgrade your equipment and improve your processes.

But acquiring the funds your business needs isn’t as easy as it sounds, especially where heavy equipment financing is concerned.

What are the Most Pressing Financing Concerns of Contractors?

Unfortunately, the coronavirus pandemic put a stop to many construction projects, resulting in lower profits for at least a few months.

What type of financing concerns are most common for contractors today?

1. Finding Resources for New Equipment

A contractor’s success lies in the power of their heavy equipment. Old excavators need an upgrade. And if you are winning bigger projects, then it makes sense to switch to heavier-duty compactors and bulldozers. But this type of equipment can be costly.

2. Needing New Vans or Trucks

Another common finance-related concern is the need for new company vehicles, whether it’s a car used by the project manager or a truck that transports equipment to and from the site. Contractors may be delaying this need until they get proper funding.

3. Shouldering Late Payments

Finance concerns aren’t always internal. If the arrangement with a client involves periodic payments, there’s always the probability of payment delays. Contractors can’t always wait for those accounts receivable to continue with the project.

All these finance-related concerns can lead to project delays and late completion. These delays are likely to have a negative effect on a contractor’s relationship with clients and consultants.

Don’t let financial restraints cause client dissatisfaction with your work.

How Do Contractors Address Heavy Equipment Funding Concerns?

The main funding-related concerns of contractors often revolve around lack of capital and the long wait for accounts receivable to come in. Getting the capital you need can be a challenge if you are uncertain about what type of funding to apply for.

Explore some of the most favorable options:

1. Equipment Financing Line of Credit

This type of financing is specially designed for contractors and other business owners who need funds for new equipment. The line of credit provides a fixed period of time where you can make equipment acquisitions. With it, you can combine multiple invoices into one financing agreement.

2. 100% Reimbursement Agreement

There will always be bigger and better equipment to make your construction work more efficient. If you choose to have a 100 percent reimbursement agreement with a lender, you can monetize the equity of any equipment you purchased within a specific period.

3. Working Capital Loans

Equipment financing isn’t the only concern of contractors. Consider taking a working capital loan if your financial concerns are related to other business expenses, like payroll and debt payments. You can also use this type of loan to cover unexpected losses.

Financing Solutions for Every Business Challenge

Regents Capital knows the different financing concerns that could be holding you back. We work alongside you to help you overcome financing challenges and secure the heavy equipment capital you need to move forward.

Maximize our team’s expertise today. Call us at 888.901.4207.

Inadequate cash can shutter companies. It is, according to a CB Insights study, the second most common reason for startup failure. Businesses that closed down narrated how they weren’t able to raise the funding needed, and without this crucial lifeblood, they had no choice but to close their doors.

These cash flow dips are no stranger to seasonal businesses. During off-seasons, ski resorts, boating companies, hospitality companies, and other seasonal industries have it harder than non-seasonal brands. In some cases, weak cash flow forces them to make concessions that are not good for business and, eventually, lead to closure.

Regents Capital Corporation believes seasonal businesses deserve support during periods of weak cash flow. Through intelligent equipment financing solutions, we support these enterprises, enable financial health, and help lead them to long-term success.

 

The Unique Challenges of Seasonal Companies

Apart from weak cash flows during the off-season, seasonal businesses also contend with other unique challenges:

 

Staff Recruitment

Some seasonal businesses close during off-peak months, which means the staff will only work during certain periods of the year. This may not be an attractive prospect to many candidates, who prefer a stable income throughout the year. An off-season company would then have lower chances of attracting promising talent. Recourse is to provide incentives to their workers, but this would further deplete resources.

Expenditure Control

Some seasonal businesses spend a significant amount of their reserves toward preparation for the peak months. These expenditures include advertising, expanding inventory, recruitment of temporary workers, etc. All these problems could be mitigated by reliable financing solutions — those that enable companies to solve unique challenges without using up all of their cash reserves.

 

Equipment Financing

When financing solutions are concerned, equipment financing is one of the most reliable. This involves leasing a piece of equipment or taking out a loan.

In an equipment loan, the business borrows an amount with the express purpose of purchasing equipment. In an equipment lease, the business does not borrow any amount. Instead, it pays a fee to use the equipment, while the leasing company maintains ownership of the equipment.

Both solutions ease the financial burden of a seasonal business. So, the business does not have to use its precious cash reserves for equipment. Equipment financing lets the company direct its cash flow to other important aspects of the business, including:

Preparing Inventory

Instead of paying for equipment, a seasonal business can purchase other inventories needed for maximum profitability come peak season.

Marketing and Advertising

The business has more resources to devote to marketing before the peak months. This translates to more sales and reservations, allowing the company to reach its income potential.

Planning for Unexpected Expenses

Surprise bills are a bane to a booming business. Adequate cash reserves cover unexpected expenses, keeping operations running smoothly.

 

Equipment Financing Through Regents Capital

With equipment financing, you are better placed to succeed during peak season and stay stable during the off-months. It is a reliable way to sustain your business in the long run.

Regents Capital makes this goal a reality for many seasonal businesses. Through equipment financing, we have helped countless businesses improve their financial health and reach the peak of revenue generation.

Let us fund your business. Talk to our representatives today.

The first half of 2020 put businesses in a tough position. Offices had to close down and employees had to work at home, and though it worked better than expected, there were still many challenges. Although it’s relatively safe to go out as long as social distancing is observed, it seems like remote work will remain a popular option in the future.

If your company decides to implement remote work temporarily or for an extended period, equipment financing options will allow you to manage your costs, and your employees will need business equipment to operate fully.

 

What Type of Equipment Should You Provide for Remote Workers?

Well-managed remote work increases cost savings and employee productivity. It could also reduce environmental impact as people choose to stay at home rather than drive to work. But the success of telecommuting means shelling out expenses for business equipment.

As an employer, you may need to purchase business laptops and communication accessories (e.g. headset and webcams for video conferencing). Some employees may need two monitors for their home office setup. If budget and logistics allow, you may also want to consider investing in ergonomic office chairs and desks that could boost employee productivity at home.

 

How Can You Finance Your Business Equipment?

You have several options for financing your secure remote work equipment for your employees. Consider the following before choosing the most suitable one for your situation:

1. Equipment Line of Credit

This is a fixed-rate type of equipment financing that gives the funding you need for up to one year in advance. This means you’ll have a secure line of credit for any equipment acquisition you have planned for the next 12 months.

2. Capital Lease

This works a lot like traditional loans. You get 100 percent financing for your required equipment and you have exclusive rights to purchase and use the equipment. This is ideal if you’re planning for long-term equipment ownership.

3. True Tax Lease

This type of financing allows you to finance up to 100 percent of the equipment cost along with related costs, like delivery and installation. In addition to tax advantages, this option provides lower up-front costs and monthly payments.

4. Equipment Finance Agreement

With this type of financing, the borrower is the titleholder. As your lender, Regents Capital serves as a lienholder on the purchased equipment. An EFA is secured only by the financed equipment, not any other business assets that you have.

5. 100% Reimbursements

This financing option lets you monetize up to 100 percent of the equity for business equipment purchases within the last 12 months. It lets you retain the use of the asset and have the option to reinvest your equity in other business plans.

You also have other financing options. There are terminal rental adjustment clause leases, which give you the option to purchased leased equipment; synthetic leases, which provide a fixed-price purchase option, and working capital loans, which typically cover unexpected losses.

All these solutions can be tailored to your unique business needs.

Find the Right Equipment Finance Solutions

Regents Capital has over 100 years of combined experience in equipment leasing and financing. We’ve processed over $150 million worth of equipment finance transactions. We can tailor business equipment financing solutions specifically for you.

Call us today at 888 901 4207.

Farmers rely on the full functionality of agricultural equipment every day, emphasizing the importance of machinery to the success of their business. Over time, equipment like harvesters, tractors, tillers, and a variety of other agriculture machinery will require replacing to stay competitive. However, getting the latest equipment is not always within a company’s budget.

Fortunately, commercial equipment financing offers a multitude of advantages that enable farmers to harvest their crops on time without spending a large lump-sum of hard-earned cash on their machinery.

Agricultural Equipment Financing: The Whats and Hows

Equipment financing involves the specific use of a loan to purchase farm equipment and assets for your business. Agricultural equipment financing solutions provide the capital required for your company to grow through the purchase of necessary equipment.

The equipment itself serves as collateral for the loan, and you can use the equipment as you make your monthly payments.

Benefits of Seeking Financing for Equipment

Immediately Use Your Equipment

Revenues for crop cycles can only go so far since the business will only boom with the latest harvest. Because of this, farmers need reliable equipment at all times without the threat of interruptions or machinery breakdowns.

Going through the traditional loan approval process consumes both time and money. Equipment financing offers an expedited and convenient way to keep your farm running and improve your profitability.

More Affordable Payments

Compared to traditional loan payments from financial institutions, agricultural equipment financing offers competitive rates, flexible terms, and oftentimes is more affordable. In terms of equipment leasing, this option provides more customized terms and allows farmers to make more affordable payments over the years.

Keep Up With The Latest Technology

Equipment leasing enables farmers to use current machines for a shorter time, allowing them to choose the latest technology for their business’s purpose. Apart from keeping your operations moving along, it enables farmers to gain hands-on experience with the recent technologies in farming.

Low Impact On Cash Flow

A large down payment and the debts tied up to machine ownership can be expensive for small farmers, which is why optimal cash flow is a common struggle among them. Agriculture equipment financing enables farmers to free up their working capital so they can use it on other projects, which promotes new opportunities and more business growth.

Agricultural equipment financing relieves you from the monetary load of getting quality farming equipment ASAP. With this financial option, you don’t need to put your business on the line with lump-sum equipment purchase that can take months before they bring a return on your investment.

If you need agricultural equipment financing or want to learn more about our equipment financing services, get in touch with Regents Capital Corporation.

Few deals create a win-win situation as effectively as sale-leasebacks do.

In a leaseback, both the buyer and the seller benefit immensely from the agreement, because each can protect their business interests and grow their respective enterprises. Therefore, it comes as no surprise that a sale-leaseback is a popular equipment financing solution among our network of business owners and entrepreneurs. In fact, many European retail businesses say they will turn to sale-leasebacks to bounce back in 2021.

Regents Capital Corporation will walk you through our sale-leaseback process, so you’re empowered to boost your business in the future too!

Sale-Leasebacks by Regents Capital

A sale-leaseback is a financial transaction involving a sale of an asset to be leased back to the seller.

First, a business seeks a fresh inflow of cash from the sale of its asset, usually a piece of equipment. An entity — in this case, Regents Capital — buys the equipment and becomes the new owner. Then, the entity leases it back to the business that sold it.

By entering a sale-leaseback arrangement, the business raises capital and, at the same time, keeps using the asset it needs to continue operations. It also keeps the company’s balance sheets healthy, compared to other ways of raising capital.

For instance, if the business decides to take out a loan instead of a leaseback, the loan will have to be repaid and will be listed as a debt in the balance sheet. On the other hand, a leaseback transaction can raise the assets in the form of cash. And instead of listing debt, the business can count rent payments as business expenses.

The new owners also benefit from the ownership of a cash-flowing asset, backed by a long-term lease. Additionally, this investment doesn’t require much management.

100% Reimbursement for Your Equipment

Regents Capital leverages a collective 100 years of financing experience to help you free up capital while still maintaining the use of your industry equipment. With a sale-leaseback, you have the option to invest your newly acquired capital toward expansion.

Our firm reimburses recently purchased equipment worth $50,000 to $10,000,000! If you have industrial equipment that exceeds $10,000,000, our asset portfolio managers can review the transaction with you.

We also reimburse equipment purchased within the last 12 months (there may be exceptions for older equipment with high residual values).

You can leaseback almost all types of equipment, regardless of what industry you’re in.

• Technological devices, like computers, data centers, and telecommunications devices
• Vehicles, like trucks, trailers, and aircraft
• Manufacturing equipment, such as waste processing machines, automated distribution systems, and printing presses
• Medical equipment, such as those in hospitals and testing centers
• Food and beverage equipment, such as industrial kitchen appliances and food processing lines

Streamlined Transactions

You will have a dedicated project team comprising an account manager, documentation manager, and credit team. We will review your credit application along with relevant documents in a clear and seamless manner. Once approved, we finalize all documentation and release the funding quickly.

A sale-leaseback gives you the option to expand your business without having to give up your current operations. It has been proven by enterprises in virtually every industry and continues to be leveraged by successful businesses around the world.

Let Regents Capital fund your growth. Get in touch with us today.