Abstract Capital Does
Equipment Financing
Abstract Capital Group – offers clients a loan used to purchase business-related equipment, such as a restaurant oven, vehicle or copy machine. When you take out an equipment loan, you’ll need to make periodic payments that include interest and principal over a fixed term.
Benefits of Equipment Financing
Convenience / Speed
An equipment lease/finance transaction in many cases can be executed and completed in less time than traditional financing alternatives.
Conservation of Capital
Leasing doesn't require the cash outlay for large equipment purchases and can be used to overcome budget limitations. Existing cash position and lines of credit remain free and liquid for other working capital needs that have higher ROE and or ROA metrics.
Tax Advantages
A lease can be structured either on or off balance sheet. As an expense, lease payments reduce tax liability and can be structured to qualify as an operating lease under FASB 13 for financial reporting purposes. The choice depends on your accounting objective and other cost trade-offs that you are willing to make in order to achieve your strategic objectives.
Frequently Asked Questions
When the equipment has been delivered and is operational. We will conduct a “verbal authorization” where you will instruct us to pay the vendor and commence the lease.
We are able to offer equipment financing in all 50 states for nearly any type of equipment. Although we do have several industry specific focuses we can also act as a general equipment finance company.
Partnering with us will help build and maintain your business credit. All reporting is done your business’s credit, saving your personal lines of credit for your personal use. Additionally, financing conserves your cash and credit lines in case of an emergency or when your business really needs it.
In some instances the monthly lease payment is treated as an operating expense and creates a “line item deduction” against revenue. In other instances the equipment is depreciated and written off over the useful life of the asset. Because every business is unique, we encourage you to seek out a qualified accountant to assist with the specific situation regarding your business or organization.
With most transactions that are under $100,000 the pre-qualification process is completed within 1 – 2 business days. We will then issue the final documentation and when the equipment is delivered we are ready to pay the supplier. In most cases the funding only takes a few days. The longest lead time is typically associated with the equipment availability.
A signed and completed one page credit application. We can typically issue approvals from $10,000 up to $100,000 based upon the application alone. Certain programs can qualify for up to $250,000 on an “application only” basis.