Geneva Capital prides itself on our ability to assess each unique situation & provide our customers with custom financing options to best suit their individual needs. We hope to make you a lifelong customer, not just the term of your lease.
Click on the menu below to learn more about leasing & what it can do for your business.
Benefits of Leasing
LEASING IS FLEXIBLE
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.
100% FINANCING
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 IS FAST & CONVENIENT
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.
TAX BENEFITS
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.
IMPROVES CASH FLOW
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.
MANAGE OBSOLESCENCE
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.
BALANCE SHEET MANAGEMENT
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.
LEASING IS SMART
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.
FAQs
WHAT ARE TYPICAL LEASE TERMS?
Lease terms typically range from 12-60 months. The most common lease terms are 36-60 months (three to five years).
CAN I LEASE TO OWN?
Yes. About 95% of Geneva Capital's clients select a "lease-to-own" plan.
ARE THERE TAX ADVANTAGES TO LEASING?
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.
DOES LEASING REQUIRE A SIGNIFICANT DOWN PAYMENT?
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.
HOW DOES LEASING AFFECT MY CASH FLOW?
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.
CAN I LEASE MORE EQUIPMENT WHILE I HAVE AN EXISTING LEASE?
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.
HOW DOES LEASING LOOK TO OTHER LENDERS?
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.
IS LEASING FLEXIBLE?
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.
Products & Services
PRODUCTS & SERVICES
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:
- Fair Market Value Purchase Option Leases.
- $1.00 Purchase Option Leases.
- Start-Up Leases.
- Deferred Payment Leases.
- Technology Leases.
- Skip Payment Leases.
- Equipment Protection Plans.
- Discount Programs for Repeat Customers.
- Property Tax Services.
- Equipment Finance Agreements.
LEASE VS. LOAN
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:
Impact on Additional Financing
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.
Access to Capital
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.
Interest Rate Fluctuations
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.
Flexibility of Terms
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.
Benefits of Leasing
LEASING IS FLEXIBLE
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.
100% FINANCING
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 IS FAST & CONVENIENT
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.
TAX BENEFITS
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.
IMPROVES CASH FLOW
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.
MANAGE OBSOLESCENCE
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.
BALANCE SHEET MANAGEMENT
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.
LEASING IS SMART
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.
Tax Savings
Let the IRS help you save money when you lease new equipment through Geneva Capital. At Geneva, we can help you structure your equipment lease to get the best tax advantages for your business. We offer both true tax leases & structures that allow you to take advantage of Section 179.
TAX LEASES
With a true tax lease, you may have the ability to write-off your monthly lease payments. This type of lease is usually written with a fair market value purchase option, such as FMV 10%. At the end of your lease term, you have the ability to either purchase or return the equipment.
CAPITAL LEASES - SECTION 179
Section 179 is a great way to accelerate your tax benefits. Under Section 179, you can expense 100% of the cost of equipment acquired in 2024 up to $1,220,000. Depending on your tax bracket, you can save a portion of that equipment cost in tax savings. To take advantage of Section 179, we can structure your lease with a PUT (Purchase Upon Termination) option at the end of the term, such as $1, or a larger predefined amount such as 10% or 20%. At the end of term, equipment must be purchased or the lease renewed to be eligible for this deduction (equipment cannot be returned).
SO...HOW MUCH AM I LOOKING AT SAVING?
That'll depend on the details of your agreement. The example below will give you a ballpark figure of where you could come in, and we also have a tax savings calculator on our website that you can use to get a closer estimate! *Remember, these are estimates and will vary. Please consult your tax advisor!
