A capital finance, also referred to as a capital lease or equipment finance agreement, is perfect for businesses which want to own their equipment 100% when they make the final payment without requiring any balloon or residual payment. It is good for assets which last a long time (over 5 years) and do not become obsolete quickly. This applies to equipment like solar energy, LED lighting, industrial machines, machine shop tools, construction equipment, work vehicles, trucks and trailers and aircraft for personal or business use. Our capital financing programs have the most flexibility with the types of clients which can be approved, it is one of the most popular loan types used.
Capital Finance key points include:
- Term: 3 – 7 years depending on type of equipment
- Rates: 6% – 9% depending on dollar amount and credit
- 100% ownership when last payment is made
- For-profit companies keep all the tax credit, depreciation and other benefits when financing a solar or energy project
- Fixed monthly payments
- Requests up to $250,000 can be approved with minimal paperwork
- Requests over $250,000 requires a 2- or 3-year financial package
- Must have business license; home-based businesses are accepted
- Best programs for businesses established at least 2+ years
- Start-up business programs are available
- Proof of cash flow required with bank statements and tax returns
The length of the term and rate will depend on the type of equipment financed and the company and personal credit. Closely held businesses will normally require a personal guarantee. Larger companies with numerous owners or non-profit groups will not require a personal guarantor if the credit and cash flow are adequate. A Capital Finance can be approved very quickly; we can also preview a request by providing current financial statements.