Brickhouse Capital is a direct lender and typically can be more flexible in the approval decisions. Our business equipment leases do not require financial statements and can go up to $250,000 (and many times more) using just a one page application. Business owners can utilize the equity in the equipment as collateral. In our current economic landscape bank loans are more difficult and time consuming to obtain. Brickhouse has a streamlined the lease approval process making things easy on you when needing any type of equipment leasing options.
According to the US Small Business Administration, 80% of businesses lease a portion of their equipment. Ease of credit approval, speed and the tax benefits are the main reasons companies choose equipment leasing and financing. Equipment leasing also affords business owners the ability to grow their businesses without significant out of pocket expenses.
See the equipment lease example and benefits below.
Sample $75,000 Equipment Lease
|Tax Write Off
(assuming 35% tax bracket)
|Net After Tax Lease Payment||$1,012|
|Total Cost of Ownership Over Lease Life||$60,720|
Benefits of Leasing include:
- Cash Flow – By making monthly payments, businesses can pay for the equipment with the improved cash flow generated from their new technology. Leasing affords a variety of options to match payment terms to business flow of cash, whether cash flow is project-based, seasonal, related to expansion, etc.
- Obsolescence Protection – Leasing allows you to match payment plans to the equipment’s expected useful life. Leasing provides flexibility at the end of the term to allow you to either take ownership of the equipment or walk away and acquire new technology.
- Tax Treatments and Benefits – You may be able to write off 100% of your lease payments from your corporate income because the IRS generally does not consider an operating lease to be a purchase. Please consult your accountant for the exact application for your business.
- 100% Financing – Leasing typically does not require a large down payment and you can finance up to 100% of the equipment cost. In many cases service, supplies, installation, warranty and other soft costs can be included in the lease. This gives you more money to invest in other revenue-generating activities and makes it easier to afford multiple products or just save it for times when you need cash most.
- Speed – In most cases, Brickhouse can approve businesses up to $250,000 in equipment lease financing with a one page credit application. Approval can usually be secured in less than 24 hours.
- Preserve Cash and Bank Lines – Preserve cash and bank lines by using equipment leasing as an alternative form of financing specifically for capital equipment. Use this financing option to maximize liquidity and access to capital by preserving cash and bank lines for other business needs.
- Strengthen Company Credit – Most of our Financing lines are tied to the business and will not be reflected as leverage on your personal credit report. As an alternate result, our financing lines will build-up and strengthen your business credit as we report the positive pay history you establish.