Understanding the Financing Process
What is Equipment Financing?
When a business is in need of equipment and doesn’t want to dip into cash reserves or their bank line, equipment financing is the way to go. Businesses choose Lease Corporation of America because they can acquire the needed equipment at a low, fixed monthly payment with little or no money out of pocket. With LCA, a business chooses the equipment and the supplier and we provide the financial means to get you the equipment fast and affordably.
The Financing Process
LCA understands that navigating through the financing process can seem daunting. That's why we break it down in 5 easy steps.
Step 1
You determine the equipment your business needs. Not all of it needs to come from the same equipment provider either.
Step 2
You complete the Equipment Financing Application ( click here ). Approval can often be in less than 24 hours.
Step 3
Once your business has been approved a Lease Corporation of America team member will work with you to get your equipment. Know what you need but not sure where to get it? LCA has a relationship with thousands of approved equipment suppliers.
Step 4
Once all the paperwork is done, your equipment is ordered and delivered to your business.
Step 5
Lease Corporation of America pays your equipment supplier(s) and your lease begins.
Why is it beneficial to finance?
- Fixed Payments / Hedge Against Inflation: Unlike loans and credit cards, your finance payment is fixed throughout the term. It will not vary with interest rate changes. Fixed monthly payments provide an excellent hedge against inflation and makes your equipment purchase more affordable.
- Preserved Credit Lines: Your monthly finance payment does not affect your bank or credit lines. Most banks and credit card companies will reduce your existing available credit lines with every purchase via a credit card or loan.
- Affordable Down Payment: LCA does not require a large up-front down payment like loans and credit card companies. Most of our programs only require first and last payments (typically 5%) in advance instead of the 20% mandated by bank loans.
- Adding ‘Soft Costs’: Financing allows you to roll in services (software, maintenance, etc.) with the equipment so the monthly payment includes your total price. Loans and credit cards do not traditionally combine services and equipment costs into one monthly payment.
- Avoiding Equipment Obsolescence: Financing makes adding onto existing equipment or upgrading to new equipment efficient and available at any time for our customers. You can upgrade your equipment as technology and your company’s needs change.
- Reduces Taxes: Unlike loan payments, finance payments may be deductible. Please consult your tax advisor to determine the deductibility of finance payments.
Have a question about Equipment Financing?