Commercial equipment financing is one of the more commonly utilized means to set up commercial property, such as factories, offices, clinics and stores. Businesses can also take advantage of equipment leases to upgrade or expand their production capacity.
The challenge for most businesses lies in the fact that key equipment usually tends to be a large investment. Aurelian can address these vital capital demands through our equipment leasing loans services. With over $500 million in capital and capital commitments with access to virtually unlimited capital resources, Aurelian has the funding capabilities in funding any size transaction.
While we rival the largest lending institutions in the world with our funds, we don’t have the red tape and restrictions you find with the traditional loans. We have an array of commercial equipment financing options to ensure you get the right tools quickly to keep production and operations going.
Equipment Leases and Loans
There are generally two financing routes that a business or organization can take to secure necessary equipment. One is by directly applying for loans in order to have the capital free they need in order to purchase and own the equipment. Banks and other lending institutions offer financing options, such as heavy equipment or medical equipment lending, for this purpose. However, it should be noted that the conventional bank will typically implement conservative guidelines. This may result in an extended and possibly difficult loan application process.
The other choice is to arrange for equipment leases. While you won’t own the equipment outright, you will have full use of it, which serves production just as well.
Benefits Of Equipment Leases
One of the main advantages of leasing over purchasing equipment is that it is a significantly less expensive option to take. Advanced payments for leases are often smaller than purchase down payments. Most often the monthly lease payments can be less than loan payments.
Since equipment leases have smaller up-front and recurring costs, less capital gets tied up, which in turn means your business will have more monetary resources to allocate. Lease payments are also actually considered as a business expense that can be deducted from taxes.
A possible disadvantage with the direct loan option for equipment, particularly with a variable rate arrangement, is that you’re subject to market changes. These can result in higher interest rates. A lease, on the other hand, is a fixed cost that is far easier to manage.
Leasing also provides more flexibility when it comes to upgrades and major equipment replacements, essential to keep your business current with the fast-paced growth of technology. A leased piece of heavy or special machinery is easier to dispatch when it becomes obsolete than equipment you own.
Effective Commercial Equipment Financing
By virtue of our private funding and access to additional resources through partner networks, we have the capability to finance any type of equipment you may need for your business. Unlike conventional banks, our commercial equipment financing approval process may only take less than a week for sizable amounts and within a day for small applications.
Significant capital resources coupled with decades of experience enable us to offer financing services to those that would normally be limited in their funding options, such as startups, or those with less-than-stellar credit ratings. We don’t just provide the necessary funding. Our aim is to help you find the best means to drive your business’ growth.