Equipment leasing

[Jay Selway]

Anybody used a leasing company to acquire their laser? Just curious about the experience of others.

Thanks

[Darin Tognazzini]

Are there companies that will Lease? I am interested as well. Do you know any companies that do?

[Jason Hilton]

I researched equipment leasing extensively. If you've got an established business with a profitable track record and a high level of income you can usually get reasonable rates. They aren't as low as you'd get on a small business loan, but they aren't horrible either. If you're a new business steer clear. The rates are so high you're better off putting a new machine on a credit card. The LOWEST rate I was quoted for a new business was 12%. The highest? A generous 18%.

[Ross Moshinsky]

Talking strictly financially, leasing is the worst way to go. Call up your credit card company and talk about loan options. They often have pretty reasonable short term loan options, often with 12 months interest free.

[Bill George]

Every so often from Capital One my credit card company runs a no interest 12 month 1% origination fee promotion. Just use one of the enclosed checks. They are great, IF you can pay it off in the 12 or 18 month period and I do. If not interest kicks in and its no longer cheap!

[Robert Tepper]

I prefer a loan. If you are an established company with a good credit history you should be able to get a loan in the 5-6% range.

With a lease, you need to make every payment.

With a loan, you have the option of making extra payments each month and paying the loan off early. If you should have an extra good month, kick in an extra $100 against your payment. It makes your credit score better and you pay your machine off sooner.

You can do as Bill mentioned above and use credit card promotions, just be sure to pay before the interest rate kicks in.

My book keeper is constantly looking at the mail for credit card promotions.

Best of luck.

Robert

[Guy Hilliard]

Depending on the accounting rules in your area you may be able to expense 100% of the cost of a lease but only the interest portion of a loan. Talk to your accountant / tax advisor.

[Tim Bateson]

I pay cash for everything. No debt makes profitability higher and eliminates pressure to make the lease/loan payments. Now I CAN make money, but I don't HAVE to make money.

However, if I had a good contract (in hand) that would cover 100% of the cost plus a healthy profit.... I would consider my options.

[Mike Null]

Equipment purchases of $25,000 or less qualify for rule 179 of the 2014 tax code in the US and if acquired before April 15, of 2014 will qualify under the more generous 2013 rule 179 which covers purchases up to $500,000. So cash could also be a good option.

[Charity Newland]

Be careful company's like Timepayment charge interest even if you payoff earlier, and also have an end of fee payment to keep the laser. Better off going to your local loan shark

[Jay Selway]

Decided not to go with a lease. They were way too expensive.

Scaled back my purchase and instead of getting the trotec 400 for now, just put a deposit down on a much more sensible, used helix 24 50w. I figure I can use this for a bit, outsource the larger format stuff, then get the larger laser when we have a bit more time in business.

[Martin Boekers]

Some manufacturers will offer that option, check with company you plan on purchasing from.

Many laser today are cheaper than buying a car or a boat.... It didn't used to be that way...

[Bruce Clumpner]

Every so often from Capital One my credit card company runs a no interest 12 month 1% origination fee promotion. Just use one of the enclosed checks. They are great, IF you can pay it off in the 12 or 18 month period and I do. If not interest kicks in and its no longer cheap!

Watch out for those "Deals"... I got burned when I paid for a tube upgrade on one through Chase Ink.. Terms were 0% with 1.5% transaction fee. Not bad... Figured I could pay it off in a year and save finance charges. Well buried in the fine print is that when you make a payment, all funds go toward paying off that loan. So if you make any other charges on the card they end up being carried month to month at their full finance fee.... Once I figured this out, I paid it off in full and said never again. What a racket!

So unless you have a card you don't use, and can only let your "loan" amount stay on the card, stay away from their advertised deals

[Ron Philman]

I've looked at a couple leasing contracts and if you're a new business w/ no credit history it might be one of your only options.
Problem I had with equipment leases was most charged me the entire terms interest even if I paid it off early. The better your
credit the better your terms for sure. Just shop around.