Equipment Leasing & Finance

Transaction Size: Ultegra can source lease finance in almost any amount. Amounts are determined by the your needs, credit, and equipment specifications.

Processing Time: Get approved usually in 24 -48 hours

Ultegra offers Equipment Lease Finance to growth, early stage, late stage, and mature companies. From a business prospective it may be cheaper to lease equipment rather than purchase. The cost of a lease is calculated differently from loans. It is better to compare monthly payments than to compare loan interest rates with lease rates. On a cost-of-capital basis, equipment leasing may be the least expensive choice.

Plus when you lease equipment, you have the opportunity to lease new equipment at the end of the term. At the end of the lease, the business may purchase the equipment for its fair market value price, a fixed price (or predetermined percentage amount), continue leasing on revised schedules, lease new equipment, or return the equipment to the Lender. Many businesses take this option to ensure that the business operates with state-of-the-art equipment instead, rather them retaining rapidly depreciating asset.

Equipment Lease Finance lines of credit allow you to free up working capital bank lines of credit for day-to-day operations. The majority of companies qualify for equipment lease finance based on cash position and ability to service the debt as well as the strength of the underlying asset to be financed. Equipment Leasing comes in a mix of structures and terms may vary depending on the client’s particular needs and or current financial and credit position.

Equipment leases can be structured as

Capital/Finance Leases

A Capital Lease is a lease structure of business equipment that is reflected on the company’s balance sheet as an asset. In contrast to an Operating Lease, for accounting purposes a Capital Lease is treated as a purchase to lessee but as a loan given, from the prospective of the lessor. A Capital Lease generally has a longer term than the Operating Lease with no residual value component.

Because they are considered assets, capital leases may be eligible for depreciation. Typical terms of a Capital Lease are 60 months with a $1.00 buyout. At the end of the lease, the lessee makes the last payment of $1.00 and the lease obligation to the lessor is fulfilled giving the borrower 100% ownership of the equipment.

Capital Leases are preferred by mature companies that are have a positive cash flow and revenue and are purchasing assets that do not depreciate as rapidly as technology equipment.

True/Operating Leases

True/Operating Leases are typically used to get equipment on a short-term basis. It can be beneficial to businesses that want to keep equipment leases out of their financial statements. Only the right to use the property is transferred and not the actual ownership. The business is only required to record the operating expense of the asset; it does not affect the balance sheet.

Typical terms of an Operating Lease are 36 months with a Fair Market Value residual component. At the end of lease, the lessee has the option to continue leasing, return the equipment, or purchase at the residual amount, that is typically determined by a third party appraisal.

Operating Leases work great for technology equipment and equipment that depreciates quickly and typically needs to be replaced and or updated within a shorter period of time. The operating lease is also a good structure for a new company that is still using up its cash resources or capital but not yet producing a positive cash flow, and is looking to add additional equity security to the transaction through the residual component.

Municipal/Not-for-Profit Leases (Tax-Exempt)

In many ways, municipalities are no different from businesses when it comes to needing creative means by which to acquire equipment. A municipal lease allows state and local governments to acquire vehicles, computers, office equipment, buildings, etc.

Ultegra can provide financing a wide range of asset including:

• Construction Equipment
• Furniture Fixtures and Equipment (FF&E)
• IT and Technology Equipment
• Laboratory and Testing Equipment
• Manufacturing and Production Equipment
• Software and Soft Costs

Ultegra services business in a wide range of industries including:

• Aerospace
• Biotechnology Firms
• Construction
• Hardware and Component Providers
• Hospitality
• Manufacturers
• Media (Film, Television, Radio, and Internet)
• Medical Device Manufacturers
• Pharmaceutical Companies
• Pro Audio and Multimedia Studios
• Research and Development Labs
• Software Companies
• Technology Service Providers

Benefits

• Get approved usually in 24 hours or less
• Get approved even if a startup
• Get approved without financials
• Get approved without good credit
• Purchase more merchandise
• Keep existing lines of credit intact
• Maintain a competitive advantage
• Include delivery and installation costs
• Realize tax advantages
• Simplify accounting
• Save on-hand cash for other business needs
• Bank on low, fixed monthly payments

Acquire equipment without tying up capital