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- Purchase new or used equipment
- Acquire commercial vehicles
- Furnish your office or showroom
- Remodel or improve your location
- Buy equipment from any vendor
- Upgrade technology, software and more
What is Equipment Leasing?
Equipment Leasing allows you to purchase equipment new, refinance old equipment, and use your unencumbered equipment to obtain working capital. An advantage of leasing is that it does not drain your bank account with a large purchase and allows your company to better predict your cash flow. Regardless of the type of industry, there are companies that will finance hardware, earth moving equipment, manufacturing equipment, technology equipment, transportation equipment, and many other options. Many businesses prefer leasing over buying due to its cash flow advantages, tax deductibility, flexibility, and efficiency.
The KAIROS Equities Advantage
- Same day approval/closing in 2-5 days
- Customized and flexible financing options
- Deal directly with decision makers
- Upgrade equipment as technology changes
- Turn unencumbered equipment into working capital
- Challenged credit is a non-issue
- Years in business is not a factor
- Assigned account team for your company
- Preserve your cash flow
- Refinancing old equipment for more favorable terms and monthly payments
How does Equipment Leasing work?
You choose the equipment you want and provide invoices from the vendor, making sure to include all shipping, installation, and setup fees.
You fill out a simple lease application with KAIROS Equities, specifying the term and type of lease you prefer.
After your lease is approved, KAIROS Equitieswill purchase the equipment and have it delivered and installed (if applicable) at a time specified by you.
You make fixed monthly payments for the term you have chosen, enjoying the benefits of the equipment as though you own it.
At the end of the lease, as written in the lease contract, you have a few options:
1. Turn the equipment in and lease new equipment.
2. Extend the lease or pay month-to-month to keep the same equipment.
3. Purchase the equipment from KAIROS Equitiesat the price predetermined in the lease contract
Equipment financing vs. equipment leasing
Equipment leasing is like paying rent — you make regular payments to use the equipment but you don’t own it. When the lease term ends, you can either return the equipment or renew your agreement. Unlike many equipment loans, equipment leasing typically doesn’t require a down payment.
Depending on the type of equipment, leasing could be more advantageous than financing. Technological products like computers, for example, can go obsolete within a few years. Leasing allows you to use that computer until your lease term ends, then you could lease a more modern computer afterward.
It’s essential to weigh the long-term costs of your equipment. If the equipment is necessary and won’t go obsolete soon, paying a lease indefinitely may be more costly than financing. In addition, the depreciation on the equipment may not be tax-deductible if you’re leasing.
Equipment financing
equipment leasing
Payment terms
Make regular payments to rent the equipment over a specified period of time
Borrower is advanced full amount and repays it in regular payments (plus interest) over a specified period of time
Ownership
You maintain ownership over the equipment during and after the loan repayment period
The leasing company owns the equipment and you pay to rent it
Down payment
Typically required
Typically not required
Cost
Lifetime cost is generally lower
Lifetime cost is generally higher
Depreciation
Tax-deductible
Typically not tax-deductible
Capital lease vs. operating lease
While most leases are equivalent to a rental arrangement, some leases allow the lessee to purchase the equipment when the lease term ends. If you think you might want to own the equipment after leasing, be sure to note which type of lease you agree to.
A capital lease allows you to purchase the equipment when the lease term expires, but it typically locks you into the lease so that you can’t cancel it.
An operating lease is similar to a conventional rental agreement: You make regular payments but aren’t paying toward ownership of the equipment. As the lessee, you can usually cancel the lease with prior notice.
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