With leasing, you are able to customize a program to address your needs & requirements - cash flow, budget, transaction structure, cyclical fluctuations, etc. For example, some leases allow you to miss one or more payments without a penalty, an important feature for seasonal businesses.
There is very little money down with leasing - typically the first & last month's payment are due at the time of lease signing. Since a lease does not require a down payment, it is equivalent to 100% financing.
Leasing allows you to add equipment or upgrade equipment under similar terms. Leasing can also allow you to respond quickly to new opportunities with minimal documentation. Credit decisions are usually made same day.
The IRS does not consider an operating lease to be a purchase, but rather a tax-deductible overhead expense. Therefore, you can deduct the lease payments from your business income. Also, because lease payments are treated as expenses on a company's income statement, equipment does not have to be depreciated over five to seven years.
Lease payments are historically lower than loan payments, hence conserving cash for other uses. Also, by leasing equipment you know the amount & number of lease payments over the life of the leasing period, so you can accurately forecast cash requirements for your equipment.
A lease allows equipment to be returned to the lessor at the end of the lease term. You can then upgrade equipment without having to manage disposal & other ownership burdens. The risk of getting caught with obsolete equipment is lessened.
Because an operating lease is not considered a long-term debt or liability, it does not appear as debt on your balance sheet, thus making you more attractive to traditional lenders when you need them.
Eight out of ten companies lease some or all of their equipment, according to industry research. Why do they lease? Because the flexibility provided by leasing allows them to have the most effective operation possible. Companies that lease tend to be the most entrepreneurial & competitive.
Lease terms typically range from 12-60 months. The most common lease terms are 36-60 months (three to five years).
Yes. About 95% of Geneva Capital's clients select a "lease-to-own" plan.
Yes. In fact, one of the most appealing reasons businesses lease new equipment is because the IRS does not consider an operating lease to be a purchase; rather it is a tax-deductible overhead expense. Therefore, you can deduct the lease payments from your business income.
You could also take advantage of Section 179, a special tax deduction allowing you to recover all or part of the cost of a piece of equipment in the year the equipment is put into service. This is a way to rapidly write-off the equipment versus taking depreciation deductions over the life of the asset.
No. Generally speaking, leasing requires little to no down payment. While the first & last month's payments may be required, leasing is almost identical to 100% financing.
You'll find leasing has a positive impact on your cash flow because you're not paying for the equipment in one lump sum. By tailoring a custom lease, business owners can conserve cash...allowing them to focus on growing their businesses. Leasing also allows you to forecast cash requirements more accurately as you know the amount & number of lease payments you will owe over the lease period.
Yes. Leasing opens the door for faster response to new business opportunities. Many leasing companies can approve an application for new equipment in a matter of a few days. This allows you &/or your company to react quickly to a new opportunity before your competitors can.
Leasing can actually help you to look more attractive to traditional lenders when you need them. Operating leases are not considered a long-term debt or liability on your balance sheet, making you look more stable to lenders. Leases are also not reported to consumer credit bureaus.
Absolutely. Lessors offer flexible terms, allowing you to customize your lease to a program which fits your needs & requirements - cash flow, budget, transaction structure, cyclical fluctuations, etc.
Geneva Capital offers a full range of financing products to meet your needs. Whether you require one of our standard offerings or a customized program, Geneva will provide a financing solution that works for you & your business. The following are some of the services we offer:
Business owners rely on equipment every day to operate & grow their businesses. Most often, customers who are looking to purchase equipment seek financing from one of two sources - traditional bank financing programs or specialized leasing companies. The following are four key differences to consider when comparing these programs:
When a business finances with Geneva Capital, we file a UCC letting the Secretary of State know where the customer is located & that the equipment is owned by the leasing company. We designate only the new equipment as collateral. Other lenders will see that only the leased equipment is under consideration & will still be willing to work with you.
In comparison, under a traditional bank loan, all property is stated...the new equipment plus your entire business. With this blanket UCC in place, other banks will not be willing to provide overlapping financing to you.
Banks have a lending threshold with each borrower. If you get into an amount of debt that the bank deems a risk, they may choose to end business with you or refuse you financing.
Leasing companies also deal with this, but only consider the equipment finances for that customer. By using Geneva Capital, you can retain access to capital with your bank without tying up credit lines.
Banks are not in the business of taking excessive risks; their programs are subject to change as economic conditions falter. As the Federal Reserve raises or lowers the Prime Rate, interest rates will increase or decrease, impacting your business outside of your control.
The opposite is true for leasing companies...they take 100% of the interest rate risk! Therefore, the payment on your lease will never change during its term, regardless of interest rates & inflation.
Most banks require 10-20% down to finance business equipment with a requirement of security...the primary concern of a bank is to protect its interests.
A leasing company's main goal is to generate cash flow. Therefore, leasing companies are highly creative in finding the easiest way for a business to get new equipment. At Geneva Capital, we offer several custom terms to fit the needs of our individual customers.
Section 179 is a special tax deduction allowing you to recover all or part of the cost of a piece of equipment in the year the equipment is put into service. Equipment must be for business use, acquired by a form of purchase (cash, lease, or loan), & eligible under IRS guidelines. This is a way to rapidly write-off the equipment versus taking depreciation deductions over the life of the asset.
Tangible property - used as part of the business operation, production, or manufacturing.
In 2015, businesses are allowed to write-off as much as $25,000 of qualified equipment acquired over the course of the year.
|2015 Equipment Cost:||$|
|Section 179 Deduction:||$|
|Bonus Depreciation Deduction:
(Not available in 2015)
|Regular First Year Depreciation Deduction:||$|
|Total First Year Deduction:||$|
|2015 Tax Savings:
(assuming a 35% tax bracket)
|Lowered Cost of Equipment after Tax Savings:||$|
|*All examples provided herein are for illustrative purposes only. Actual numbers will vary based on credit and individual financial situations. Geneva Capital LLC recommends each customer review their own unique situation with their tax advisor. All transactions are subject to equipment and credit approval.|
If you ask us, there's nothing that better reflects how we're doing than feedback from our valued customers. Whether they write us an email singing our praises, or give us thoughtful insight into what we can improve, we greatly appreciate it & it helps us become a better company.
"We currently have a lease with Geneva Capital. I have only good things to say about everyone from sales to credit. They work together as a team to meet their customers' needs & requests. I will definitely call them again for future lending needs."
"I am on my third lease with Geneva Capital. They have been very easy to work with & their rates are very competitive. It's easy to get someone on the phone to answer questions. They're also flexible in their terms & will help you choose the structure that works for you. I would highly recommend them!"
"My experience with Mike Tripp in setting up leasing of equipment & fixtures for two Anytime Fitness locations in the past 3 years is my basis for the following comments pertaining to his work.
Mike can be expected to exhibit the following:
In summary, Mike is one of those people that I would definitely seek out to do business with in the future, regardless of which company he worked for, if applicable...just because of his hard work & personable approach to business. Thank you."
"I recently had the pleasure of working with Mike Tripp at Geneva Capital while leasing some fitness equipment for our employee workout facility. The whole process went very smoothly. Being a large corporation, I don't have time for leasing companies to go back & forth with documents & requests. Geneva Capital made the entire process painless, & our equipment was ordered within days of us applying for credit. I would definitely use Geneva Capital again."
"With Geneva, our customers are well taken care of. The staff is responsive & efficient with quick credit decisions & timely fundings. Geneva employees relate to our customers in a friendly & professional manner, putting our customers at east while making them comfortable with the terms of their lease. At Star Trac, we count on low rates & competitive approvals & Geneva always delivers. We are extremely satisfied with the quality & professionalism of their organization."
Monthly payments have many factors that are taken into consideration while determining the dollar amount. Among these are the length of your chosen lease term, type of equipment being financed, & personal credit. The calculator below will give you an idea of what range your payments could fall into.