Having the right tools and equipment is necessary to ensure smooth business operations, but financing equipment can be costly. When it comes to equipment purchases, business owners can use their operating cash flow to pay for equipment upfront. But if you prefer to preserve your cash, consider an equipment financing program.
Equipment financing covers any items your business needs to operate — from furniture and vehicles to large machinery. Companies must take advantage of these funding programs as they enable you to purchase equipment at low-interest rates.
Here at Regents Capital Corporation, our equipment leasing programs support you with the following business funding solutions:
Capital leases are, by nature, rental contracts for the temporary, exclusive use of an asset. But for accounting purposes, it has all the characteristics of asset ownership, mimicking traditional loan purchases. It also offers complete financing, allowing you to allocate your money efficiently for other projects with higher ROI.
If you are after long-term equipment ownership, go for a capital lease that offers purchase options. With a capital lease, payments are fixed, and then you can buy the equipment at a bargain price according to its depreciated value.
Equipment Line of Credit
Our equipment line of credit goes far beyond offering the benefits of our lease products; it also enables you to space equipment acquisitions over time. You can commit up to 12 months in advance with periodic takedowns (which we match to your equipment’s expected utilization time). Equipment line of credit services also allows you to combine multiple invoices into one advanced invoice.
True Tax Leases
True Tax Leases are ideal for business owners on tight budgets. This financial solution has lower monthly payments, lower up-front costs, and multiple tax advantages. A True Tax Lease can finance up to 100 percent of your equipment cost, which includes ‘soft costs’ like installation, delivery, transportation, and training.
True Tax Leases have lower payments compared to Non-Tax Leases, which preserve your cash flow. You can use this funding solution to deduct qualifying lease payments as well.
Terminal rental adjustment clause leases (TRAC) combine the advantages of leasing while retaining the benefits of ownership. Once your TRAC lease ends, you can:
- Continue the rental of the equipment at reduced rates and pay based on the residual value amount
- Buy the equipment at a pre-determined residual rate
- Return the equipment
Equipment Finance Agreements (EFA) is a loan where borrowers are considered titleholders while the lender, Regents Capital Corporation, is the lienholder of the financed equipment. EFAs are more advantageous than traditional bank loans because:
- It is secured only by the equipment being leased or financed and NOT your current or future assets
- Most bank loans have constrictive rules that keep you from borrowing future funds when needed
- Many bank loans do not have fixed rates and are tied to market rates
Working Capital Loans
These loans can pay for your daily expenses, such as debt payments, rent, and payroll. Regents Capital Corporation offers both secured and unsecured working capital loans. With the latter option, how you use the money is up to you. The approval of the loan does not depend on the conditions of the loan’s uses.
Get the funding for your business’s equipment with a trusted financing firm. Talk to a Regents financial expert today to learn more about our equipment leasing and finance.