American Express Equipment Finance

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Industry Leader providing leases and loans for a wide variety of equipment types in all industries. Equipment Leasing has become a preferred method for 80% of American businesses, and accounts for over 30% of all capital investment in equipment. When you need equipment, the guiding rule is, "If the asset appreciates, buy it… If it depreciates, lease it." Sure, local banks talk about “competitive equipment financing proposals” but the paperwork, time and hassles that a small businessperson can tolerate have limits. In contrast, Equipment Leasing is quick and easy with substantially less paperwork. The best aspects of Leasing Equipment Unlike bank loans, leasing typically does not require a large down payment, and leasing does not require compensating balances in a deposit account. Plus, all your assets aren’t tied up with a Blanket Lien by the bank, and you do not have to re-qualify every year by sending financial statements and tax returns to the bank. In fact, most small-ticket leasing (under $150,000 in equipment cost) is done on an “application-only” basis. Approvals are granted with a simple one-page application for credit. Application-Only Equipment Leases For businesses that need a quick and simplified solution, app-only programs focus on quick turn-around time via use of credit scoring. A basic credit evaluation is conducted using commercial and personal credit bureaus as well as secretary of state databases and other public record. Within 24 hours, businesses can typically receive up to $150,000 in equipment leasing approval, without any additional financial statements. Equipment Lease Terms are Flexible The average length of an equipment lease ranges between 12 and 72 months (availability may vary depending on equipment type). Scheduled payments are normally on a monthly basis, but quarterly and even seasonal payment schedules are widely available. All types of both new and used equipment qualify for leasing, including office furniture and many types of software. Tax treatment and benefits When equipment is purchased with cash or bank financing, the equipment is depreciated over its useful life. Leasing generally offers the tax benefit of allowing you to deduct monthly payments from taxable income when paid, accelerating deductions because payments on operating leases are typically treated as operating expenses. Please confer with an accountant for the exact treatment within your business.

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