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 Equipment
Leasing
Whether you're growing your business or trying to stay ahead of
the competition, you may need new equipment. Leasing can provide
flexible solutions for acquiring equipment as you're building your
business. At BCF, we offer a range of leasing
options to fit your business and budget.
Superiority of Leasing
Software Leasing
Types of Lease Programs
Association Lease
End of Term Option
THE SUPERIORITY OF LEASING AS A FINANCING STRATEGY
No down payment required.
Frees up capital for other business needs
with up to 100% financing
Offers potential tax advantages
Payments may be tax-deductible, depending on
the lease structure
Off-Balance sheet financing.
Present the assets as an operating expense. |
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It is possible to lease equipment and technology-based systems that will never become obsolete, or out dated, including restaurant equipment, high-tech computer hardware and software, heavy machinery and construction equipment. Your business will always be able to afford the latest developments.
Provides flexible end-of-lease options depending on the following:
Lease type you select
Lease Structures Available
Fair Market Value Lease
Fixed Purchase Prince Lease
$1.00 Purchase Lease
Terminal Rental Adjustment Clause (TRAC) Lease
Fair Market Value Lease
For more information on the superiority benefits of leasing
click here
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Software Leasing
BCF has a single mission; to provide lease-financing solutions
that meet the specifications of a business seeking to acquire
software.
We understand the extended sales-cycle inherent in the software
industry. Your final decision to migrate to a new software
application platform or implement a comprehensive software
installation is a major commitment in terms of investment capital
and resources.
Our commitment is to offer leasing solutions that allow us to meet
the vendor's financial requirements, commiserate with the software
installation schedule.
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Why Association Lease?
Association lease enhances the power of leasing by allowing you
to refresh equipment prior to the end of a lease, ensuring that you
have the vest technology and equipment possible.
This means you can:
Keep your computer systems current
Ensure greater operating efficiency
Reduce maintenance costs
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Association Lease
Association Lease has a single purpose: to provide competitive lease
financing to associations and charitable organizations, in order to
help meet their operating and financial objectives.
We understand the issues you face providing the highest levels of
service, within the confines of strict budget controls. Charitable
giving goals, accounting, continuing education services, member
recruitment and retention, purchasing programs, communications, and
conferences; all require considerable resources that challenge even
the most experienced association managers.
With association lease, youll find knowledgeable leasing
professionals who understand the issues unique to managing nonprofit
organizations. BCF is committed to working within this specialized
environment to structure lease financing solutions that open doors
to the technologies and equipment you need at a cost you can afford.
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END-OF-TERM OPTIONS
One-Dollar Buyout
At the end of the lease you have the option to purchase the
equipment for $1.00. This is a popular choice for businesses
acquiring equipment that has a strong residual value, however tax
benefits may be limited.
10% Buyout
At the end of the lease you have the option to purchase the
equipment for no more than 10% of the original equipment cost. This
is a popular choice for businesses that want a strong tax deduction
and anticipate purchasing the equipment at the end of the lease.
Fair Market Value
At the end of the lease you have the option to purchase the
equipment for its fair market value. This is a popular choice for
businesses that want a strong tax deduction.
In addition to providing funding for your capital equipment, BCF
will also accommodate other related costs, such as, installation,
freight, and other associated soft costs.
When you lease through BCF, you can also replace your equipment as
needed and keep up with the newest technologies on the market. We'll
even provide upgrade options created especially for you.
Periodically updating your equipment brings several benefits:
Continuing use of state-of-the-art operating systems
Reduced repair and maintenance costs
Operate at higher efficiency levels
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Option 1: Leasing
Leasing is your best long-term financing solution. By leasing
instead of paying cash up front, you free up capital for other
purposes as your business grows. You need databases and high-speed
on-line connections to manage information files on customer
preferences, keep track of your best vendors, monitor the
competition and emerging markets, and communicate with customers in
an instant. You need attractive furnishings and functional
equipment. You need marketing support and a trained, motivated
staff. All of this takes capital...and you'll have more of it by
leasing-rather than buying-capital assets.
You'll enjoy the reductions in repair and maintenance expenses that
come with newer equipment, plus the operational efficiencies that
accrue when technology resources are acquired through a
well-conceived plan.
Leasing also rewards you with:
Off-balance sheet financing
Payment amounts that are determined up front
Fully expensed lease payments
Potential tax benefits
Seasonal payment structures
Fixed-rate financing
With BCF, your business keeps pace with changing technology through
our flexible lease structures and upgrade options tailored to grow
as your business expands.
Option 2: Company Bank Financing versus Leasing
Bank loans allow you to preserve some capital at the outset,
however, require a down payment of 10 to 20 percent based on your
loan request. And will be subject to the risk of technology and
equipment obsolescence that comes with ownership. Moreover, banks
loans are cumbersome administratively and impose other covenants
that narrow your financial options. Banks can be inflexible if you
already have your credit lines with them. Bank loans often require
compensating balances, availability charges, and non-usage fees. -
All of these are not required by BCF.
On the practical side, banks will not support technical difficulties
with your equipment, nor will they take old equipment off your hands
when it's time to upgrade. For your business to grow, you can't
afford to be stuck with older equipment and technology. To maintain
that competitive edge, you need the best financing solutions
available by leasing through BCF. Finally, consider that banks also
shy away from some of the most important investments like: software,
tenant improvements and other "soft collateral." BCF understands
these types of investments and is comfortable in providing either
off balance sheet financing or capitalized lease structures.
Option 3: Paying Cash
Cash Rules! Paying cash depletes your hard-earned capital
reserves, preventing you from allocating cash to more important uses
like advertising or business expansions and renovations. And by
paying cash in full at the outset, you can only depreciate and write
off a small percentage of the original cost each year. With
something that changes as quickly as computer technology, you may be
saddled with outmoded inventory tracking equipment or POS systems
before they're fully depreciated, potentially resulting in a book
loss and a negative hit to profits.
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TYPES OF
LEASE PROGRAMS
The Standard Lease
The most common lease program is the standard lease program. The
standard lease program usually requires the first and last payment
up-front and then a level monthly payment for the term of the lease.
Terms usually range from 2-5 years with various end-of-term buyout
options.
The Step Lease
The step lease is a popular choice for equipment acquisitions in
excess of $50,000. Your payments start low and then "step up" to a
normal payment. This allows you to acquire the equipment and
integrate it into your operations without a significant impact on
cash flow. At the end of term on this program you also have various
buyout options to choose from.
The Deferred Lease
The deferred lease is a popular choice for businesses acquiring
income-producing equipment. The deferred lease is a payment program
where you have up to 90 days to use the equipment before your first
payment is due. Once again you have various end-of-term options to
choose from.
The Skip Lease
The skip lease is a popular choice for seasonal businesses. We can
design a lease payment schedule that is only due on certain months
of the year. This allows you to match your cash flow with your
monthly payment schedule. As with all our plans, you have various
end-of-term buyout options.
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