LEASE PROGRAMS
It is the use of equipment, not ownership of equipment that generates profits.
ProPower offers custom Lease programs tailored to your businesses needs. Through an extensive network of financial partners, ranging from Private Equity to Institutional to Non-Traditional, ProPower is able to offer funding ranges from $15,000 to $90 million. ProPower has an above average number of available capital resources from which to align your businesses needs.
Our streamlined, "no bull" approach, offers our clients professional financial solutions with a straight forward, friendly approach.
Example of Lease Programs Offered:
- 100% Financing
- Application Only Up to $250,000
- Packaged Master Leases
- Start-Up Financing
- Tough "C" Credit Programs
- Franchise Equipment
- Vehicle Fleet
- Heavy Equipment
- Sale-Lease Back
- Third Party Sales
- Variable/Seasonal Payment Options
- Municipal and Non-Profit
Equipment leasing is an excellent way to grow your business without huge out of pocket expenses. Currently, 35% of all equipment being acquired is through equipment leasing. Leasing offers real advantages including better value, more convenience and greater control. In most cases, the full amount of the equipment, as well as the service, shipping, installation costs and maintenance can be included in the lease. This spreads the cost out evenly over the term of the lease freeing up your money to work harder for you.
Whatever your business, whatever your strategies and objectives, in a dynamic business environment, leasing just makes more sense than buying. Leasing gives you financial flexibility, helps you meet changing technology needs quickly and easily, and may offer tax advantages, too. Equipment leasing is a powerful tool that saves you time and money and helps you gain the competitive edge.
Leasing Advantages
- Conservation Of (Working) Capital:
With an equipment lease, you get 100% financing so the amount of cash needed up-front is reduced. Even if you have the cash to purchase your equipment it may not always be the best choice. With equipment leasing, cash can be used for other business uses and investments such as expanding sales, new marketing programs, quantity discounts, increasing inventories, opening a new line of business, or simply cash reserves. - Preservation of Credit Lines:
A lease preserves bank lines of credit for working capital, seasonal requirements, other appreciating investment opportunities, or emergencies. Equipment leasing is like opening an additional line of credit. - Better Terms and Structure than Banks:
Most bank loans require larger down payments, compensating balances, additional collateral, or restrictive covenants. They may not be as flexible in their payment schedules and may tie the financing to a floating interest rate. Equipment leasing has fixed payments, flexible schedules, low down payment, and does not require extra collateral. - Off Balance Sheet Financing:
Leasing is the perfect tool to acquire new equipment without further leveraging your company's balance sheet. If additional debt may jeopardize an existing bank borrowing covenant, an operating lease may be the perfect solution to your next equipment acquisition. - Tax Advantages:
Operating leases are generally treated as fully deductible direct operating expenses, which means a lower taxable income. In addition, equipment leasing can be a tool to avoid certain negative impact of the Alternative Minimum Tax. Leasing provides your company with substantial tax advantages you can't achieve when you pay with cash or finance via a traditional bank loan. Due to the recently modified tax laws, IRS Section 179, small businesses can now write off up to $125,000 ($160,000 for qualified enterprise zone and qualified renewal community property) of equipment the year they put it in service, even if not structured as an operating lease. Consult with your tax professional to determine what percentage of other types of leases could be deducted.
- Hedge Against Inflation:
With the lower, fixed-rate payments of an equipment lease, you're protected against inflation. With equipment leasing, cash outlays are deferred as compared to an upfront purchase. Inflation will then lessen the cost of future lease payments, since the payments will be made with "cheaper" dollars. You will be making your monthly payments to the leasing company with ever-inflating dollars during the term of the lease. This actually reduces the cost of financing to you in real dollars, which is an advantage that is often overlooked. - Maintains Owner's Equity:
Many companies in a growth phase sell stock to raise money for expansion. A well-conceived lease program can allow a company to grow while minimizing the need for equity financing. - Facilitates budgeting:
Equipment leasing simplifies accounting procedures and eliminates depreciation scheduling. A fixed lease cost ensures consistent control over equipment expenditure.
Technology Advantages
- More choices, more equipment, and lower costs:
Nearly any type of business equipment can be obtained through equipment leasing. With a lease, you can specify the manufacturer, the model number, even the source. You're covered by all conventional manufacturers' warranties. And because lease payments are usually lower than other forms of financing, your leasing dollar allows you to acquire more of the equipment your business needs or more advanced equipment. In addition most soft costs can be included such as delivery charges, installation, training, and software to ensure the equipment is productive immediately and again reducing the initial cash outlay. - Keeping your equipment up-to-date:
When you lease, you're never tied to outdated machinery, equipment, or software. At the end of the lease you have complete flexibility: you can return the property to the leasing company, purchase it for the amount of the option you chose at the beginning of the lease or even renegotiate the lease and continue leasing the property under new terms. Your choice. Most importantly, you are able to avoid the burden and cost of the recycling and disposal of the equipment. During the term of the lease you also have the ability to upgrade your equipment or software if necessary. - Leasing is Profitable:
Using equipment, not by owning it, generates profits. Let the equipment pay for itself through increased revenues or savings from its use. - Flexible Programs:
Lease payment plans can easily be designed to mirror the useful life of the equipment or to match the cash flow and budget of the company. Monthly or quarterly plans, seasonal plans, step-payment plans, and 90-day deferred plans are some of the options available. Upgrade or add-on (co-terminus lease) can also be structured. - Protection from Equipment Obsolescence:
With the scheduled updating of your business equipment offered through equipment leasing, you can maintain a competitive edge, to keep you ahead of your competition. With an equipment lease, upgrading to newer technology during or after the lease is easy. In contrast, when equipment is purchased with cash or bank financing, there is an incentive to postpone any upgrade until the original investment has been recouped through depreciation, which hinders your flexibility. A planned replacement program avoids obsolescence and keeps you up to date with the latest state-of-the-art technology.
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