Equipment Leasing With Balboa Capital

Balboa Capital realizes that a big challenge for many businesses is maintaining the amount of working capital needed for business growth and success. As you know, working capital is used to purchase inventory, pay employee salaries and cover a whole host of business operating expenses. When your working capital runs low, meeting these financial obligations puts a real strain on your business. That’s where Balboa Capital can help.

Balboa Capital offers equipment leasing plans that preserve your working capital and much-needed credit lines. This means you can acquire the business equipment you need without a 100% cash outlay. Balboa Capital wants you to know that putting down a large sum of money for business equipment is risky, even for the most successful company. A sudden economic downturn or slow sales period can leave your business asset-rich and cash poor.

Lease financing provides your business with a source of funding that is separate from your bank, lines of credit, credit cards and cash. Leasing is a great way to secure the equipment needed to grow your business and improve its operational efficiencies.

Equipment Leasing Advantages:

• Equipment Leasing Is Affordable – Leasing lets you acquire the business equipment you need at a monthly price you can afford; it also frees up borrowing lines for working capital and preserves your much-needed cash flow.


• Equipment Leasing Allows For 100% Financing – Leasing equipment allows you to finance all the costs associated with the equipment. With an equipment lease, you can roll in the installation and training costs, and the down payment is far less than with a bank loan.


• Equipment Leasing Offers Tax Advantages – Leasing your business equipment is considered an operating expense, and depending on your type of lease, you may qualify for the Section 179 Deduction (see Balboa Capital's tax calculator for more details). Balboa Capital recommends consulting with your tax advisor for more specific details.


• Equipment Leasing Affords You Flexibility – Business equipment depreciates and can become outdated, and leasing your equipment with shorter terms (two or three years) allows you to stay ahead of the technology curve. At the end of the term, simply return the equipment. This leaves you free to lease newer business equipment.


• Equipment Leasing Creates Attractive Balance Sheets – When you lease your business equipment, you don’t have to capitalize it on your balance sheet; the monthly payment is viewed as an expense.

Comparing Financing Options:

Balboa Capital has provided equipment leasing plans to many thousands of businesses since 1988. Balboa Capital knows that business owners like you might have questions about equipment leasing, and we’ve got answers. You can contact Balboa Capital today to speak to one of our experienced financing professionals, who will help you determine the best equipment lease plan for you.

Balboa Capital also has an informative chart below to help you understand what financing and purchase option makes the most sense for your business. You can also reference Balboa Capital’s Type of Leases information page to see which equipment leasing option will work best for your business.

QUESTIONS TO CONSIDER - CAN I...	LEASE	BANK LOAN	CASH
Get my equipment without a financial statement,  no hassle paperwork and get approved in one day?	YES	NO	Uses up cash on hand
Take advantage of tax benefits and deduct most of  the monthly payments from taxable income?	YES	NO	NO
Defer payments until equipment is up and running?	YES	NO	Cash outlay is immediate
Avoid financial reporting?	YES	NO, shown as debt on your balance sheet	NO
Have no cash outlay or down payment?	YES	NO, most banks require a down payment	NO
Match payments to current cash flow requirements?	YES	NO	NO
Buy new or used equipment quickly?	YES	NO	YES

 

As your business continues to grow, you may need to lease other types of equipment or upgrade to newer technology. Balboa Capital’s leasing options are geared toward your business’ needs, and our account managers are ready and available to advise and assist you. Contact Balboa Capital today, or complete our no-obligation application and one of our account managers will work with you to find the best option for your business.