Machine Leasing

Obtaining a machine lease through Native Capital is an easy and affordable way to get the equipment that you need now. As a direct broker, we are able to help lenders with decisions quickly, typically within 24 hours because we understand your business.

The application we use is much simpler and easier to fill out than the application used by banks and other traditional lenders. Most of our lenders does not require financial statements or a business plan for standard leases. The application is just a single page in length.

Leasing may be more affordable for your business for several reasons. Down payments are lower and 100% financing is available in most cases, allowing you to keep more cash on hand for operating expenses. To obtain machinery financing through a bank, you will need a significant down payment. Some banks require a 50% down payment, especially when the applicant is a new or small business.

Operating leases are viewed as operating expenses for bookkeeping and tax filing purposes. The equipment need not be listed as an asset. With machinery finance options through traditional lenders, the equipment would be listed as an asset and the loan amount is listed as a liability on the balance sheet.

Operating leases help to streamline bookkeeping by allowing you to list the monthly payment solely on your profit and loss statement. The tax benefit can be as much as 100% of the monthly payment, depending on your business and other factors that your accountant can review with you.

For most companies, the tax benefits are large enough to actually reduce the total cost of owning the equipment. The chart below shows an example of how this could work out for your business.

Check out our sample $75,000 Machine Lease Costs, Possible Tax Deductions and Savings

Lease Amount$75,000
Term (months)60
Payment$1,556
Tax Write Off
(assuming 35% tax bracket)
$544
Net After Tax Lease Payment$1,012
Total Cost of Ownership Over Lease Life$60,720

As you can see, machine leasing could actually save money for your business. You could end up spending less than if you paid for the equipment in cash.

We chose $75,000 only to provide an example. You could qualify for a machine lease of up to $250,000. In some cases, larger amounts are also approved. The sample tax deduction is based on a 35% tax bracket. Your savings could be greater or smaller.

The Benefits and Advantages of Machine Leasing with Native Capital Include:

  • Grow Your Business Faster – No large down payment required to get the equipment you need to grow
  • Tax Benefits – Up to 100% of the monthly payment can be written off – Limits for business deductions raised to $500,000 starting in 2013
  • Use the Equity in the Equipment for Collateral – no additional collateral is required to qualify
  • Flexible Payment Terms – Terms can be customized to project-based, seasonal, etc. to match your business cash flow
  • Never Be Stuck with Obsolete Equipment – lease term can match the expected useful life of the equipment. Flexibility at end of term allows you to take ownership or return equipment in favor of the latest technology. This is particularly important for medical, audio-visual and computer equipment.
  • 100% Financing Available – Service, supplies, warranty and installation can also be financed and added to the monthly machine lease payment. Allows you to keep more money in the bank or make other business purchases.
  • Reserve Your Bank Line of Credit – Maximizes the liquidity of your business
  • Build Your Business Credit History – Your positive payment history is reported to help you create or build a credit history

In today’s economy, business owners need more options to be competitive and profitable. Native Capital’s machine lease options offer a distinct advantage when compared to other types of financing or when compared to purchasing your equipment outright. Get a quick quote or apply online today and get the equipment you need fast!

Quick Quote!

ABOUT US

Through our experience and understanding, we’re able to serve a diverse range of industries and markets with solutions tailor-made for our clients. Our passionate team of dedicated professionals takes great pride in the lasting relationships formed with our vendors.

OUR MISSION

Through our dedication to delivering exceptional service and our passion for building long-term relationships with our vendors and end users, we remain committed to achieving our vision of becoming industry leaders for those seeking unparalleled service from a nationwide lending provider

NATIONAL MEMBER