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What is Creative Financing?

When business equipment leasing began it was primarily for office furnishings. As business environments grew and changed, equipment leasing companies changed what they leased and how leases were structured. Businesses today can and do lease things in addition to furnishings such as manufacturing equipment, specialized electronic components, computers, and even software. As a result, many different types of equipment financing evolved and that lead to what we now refer to as creative financing.

Who should consider Creative Financing?

·         Any business needing to acquire a variety of items that have different depreciation schedules

·         A fast growing company who already has multiple leases for existing equipment

·         A new business with little credit or equity

·         Any business owner who doesn’t feel the traditional three/five year fair market value or $1 buyout lease is the right solution for their current situation or need

What is Creative Financing?

Creative financing uses a variety of methods to acquire equipment while using as little of your own money as possible. Sometimes creative financing includes a combination of a traditional equipment lease(s) plus other methods. Sometimes a second small loan is obtained to essentially financing 100% of the equipment. Other creative financing methods include long-term financing and working capital loans. Some companies utilize non-financing methods, such as crowdfunding, as part of their startup costs. It is not unusual for a new business to utilize creative financing to help them get started.

Your financial specialist or leasing company can help you work through best methods that you qualify for in order to acquire the equipment your business needs. You may find that the best method is actually a combination of types of leases and loans. Once you and your financing company have come to an agreement on the type or types of financing you’ll be using, it’s always a good idea to speak with your accountant to make sure that the methods being used will best benefit you at tax time.

Creative financing isn’t illegal or a way to hide assets, it’s just one of the ways ELEASE has helped thousands of businesses since 1995 with their equipment acquisitions. We’ve been working with our customers to help them find the best solution through different types of business equipment leasing. If you are a business owner looking for options for leasing software, office equipment or furnishing, let the team at ELEASE help you today. Give us a call or download our easy application.

Tom Williams

Tom Williams

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ELEASE provides business equipment leasing, small business funding, start-up leasing, working capital loans and other business finance services to small and medium businesses across the US.

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