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131 S. Wheeling Rd.
Ph: 847-520-9758
Fx: 847-520-4652

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A Recently Financed Machine Makes the TMEF Case.

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Why the bottom line cost for capital equipment demands a thorough return on investment (ROI) analysis.
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How to maximize your chances for approval with the best terms.
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Company Information

Tristate Machinery
Equipment Financing
131 S. Wheeling Rd.
Wheeling, IL. 60090
Ph: (847) 520-9758
Fx: (847) 520-4652

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Legal & Licensing

TMEF is a licensed
Illinois "S" Corporation


A Lease or a Loan? an Overview of Capital Financing Options

Modern capital equipment financing is done either by leasing or the traditional loan.  Every business should to consider the advantages and disadvantages of each in light of their own specific circumstances.

With a loan, the borrower pays principal and interest over the term of the loan, and own the equipment outright at the end. One advantage of that is that legally, the equipment is considered  a legal asset to the business at the outset and can be used as collateral to borrow against. However, a loan may incur a substantial down payment. Also the equipment lifecycle may make ownership itself a disadvantage if it's likely to be obsolete at the end of the term.

Generally, leasing offers more flexible payment options, depending of the terms and what type of lease is contracted. There are two general classifications of lease: the capital lease, more like the traditional loan with ownership ($1.00 buyout) at the end, and the operating lease, which is more like renting the equipment for the specified time, with an ending option to purchase the equipment for fair market value or simply walk away. Tax wise, an operating lease is expensed like rent, electricity, etc. It has the added advantage of paying less per month if ownership takes a back seat to cash flow. 

Leases are completely tax deductable (as opposed to interest only for loans). They also more flexible when it it's time to upgrade or trade up. They maximize cash flow, especially without a substantial down payment. However, the overall suitability in your situation of leasing over a loan must take many things into account before committing to one or the other.

...Our Dynamic Funding Model  uses a wide variety of funding sources, each specializing in different types of financing, leasing, and/or lending, to offer our customers the widest range of competitive, creative financing the marketplace has to offer.

Remember,  Tristate Machinery Equipment Financing is your advocate.  With eighty years of combined experience in equipment and finance, we have the connections and the knowledge to find the exact financing unique to help your business. 

More Resources:
An excellent overview on business lending is
Equipment Financing, Equipment Leading, Equipment Loans Guide.

* All links in red

Call us at (847) 520-9758 or send an E-mail  to get started putting our
lending expertise to work for your next capital purchase.

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