Why Lease?

A vast majority of U.S. companies utilize lease financing for equipment purchases due to its flexible financing structure and advantageous repayment terms. Leasing also allows many growing businesses more leverage than traditional financing sources are willing to provide.

Essex Funding provides an alternative source of competitively priced funds for capitalized assets.

Essex Leasing Benefits

• 100% financing - No cash out of pocket.
• Freight, installation, other soft costs can be included.
• Lease terms of up to 60 months.
• Competitive fixed interest rates.
• Equipment cost range – $10,000 to $5,000,000+.
• Equipment ownership option at end of lease.

Leases vs. Loans

Lease

• No down payment typically required.
• Lease payments can usually be fully deducted as a business expense.
• Easier to upgrade equipment as lessor takes risk of obsolescence.
• Can be considered off balance sheet assets, with no associated liability.
• Conserves working capital and frees up existing bank lines of credit.
• Often requires less stringent credit criteria.
• Payments are fixed for the life of the lease, allowing easier budgeting.
• Generally requires no restrictive covenants or financial reporting.

Loan

• Usually requires down payment of 20% or more of purchase price.
• Typically won't include soft costs such as shipping, training, and installation.
• Assets held as owned equipment with corresponding liability.
• Tax deduction for the interest and depreciation portion of the loan payment may be utilized, but this amount is less advantageous than expensing the entire payment amount.
• Borrower takes risk of equipment devaluation with technological obsolescence.
• Often requires additional collateral than just the equipment being purchased.
• Rates are often floating, subjecting the borrower to take risk that their payments could rise.
• Often requires borrower to maintain certain financial ratios and report financials monthly.