Leasing is one of the best ways to obtain equipment finance. A lease is good for businesses because it does not tie up your money.
Construction equipment finance through a lease is attractive to businesses because they do not need huge amounts of collateral so as to get approved.
1.) Equipment Loan – This is a loan obtained using the equipment as collateral. Excellent operating history, credit rating, debt ratios are the most important considerations.
2.) Equipment Leasing – This is a contract for a fixed period of time in exchange for payments, usually in the form of rent for equipment. This type of financing has lower credit requirements.
3.) Municipal Equipment Leasing – This is a lease transaction with any government agency, such as a City or County.
4.) Equipment Sale and Leaseback – This is the sale of an asset for cash, with a contract to lease the asset back from the funding source purchasing the asset.