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Equipment Leasing

Practically any type of equipment that generates income or saves time and labor can be leased.

Disclaimer: These are general qualifications. Other information might be considered during your application.
What are Equipment Loans? detail-img

One of the types of equipment loans that you can use to purchase new business equipment right away, by using that equipment as collateral, is Equipment leasing.

What Do I Need to Qualify? detail-img

11+ months in business 600+ credit score $100,000+ in annual revenue

How Do I Apply with Orumfy ? detail-img

Apply Here for Equipment Loans

Dan Debelis “statement about help” send my questions
Calculate your potential tax savings

with section 179 “business vehicle deductions”

Overview

Overview

Equipment Loans can be used with practically any type of equipment that generates income or saves time and labor.

Equipment Leasing terms and the amount of the lease will depend on the type and the life expectancy of the equipment.

Choosing between equipment leasing or equipment loans for asset acquisition is directly related to the tax and accounting implications for your business.

Equipment leasing and equipment loans can provide tax and accounting advantages that can benefit a company's efficiency and overall profitability.

At Orumfy, our equipment loans experts specialize in helping business owners get the equipment they need to meet their company’s goals.

Max Advance Amount
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Up to 100% of equipment value
Term
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Expected life of equipment
Factor Fee
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8 - 30%
Speed
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As little as 2 days
  • product-img
    Maximum Loan Amount Up to 100% of equipment value
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    Term Expected life of equipment
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    Factor Fee 8 - 30%
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    Speed As little as 2 days

Types of Equipment Leasing and Equipment Loans with Orumfy

Types Capital Lease/Finance Lease/$1 BuyOut TRACK Lease Lease Back True Lease or Operation Lease The "PUT" Option lease
Description These types of equipment loans share the advantage of fixed monthly payments, but with the guaranteed option to purchase the equipment for a nominal price of $1 at the conclusion of the lease. Another type of equipment leasing product is A TRAC lease. This is a special type of true lease that is generally used for “over-the-road” vehicles like trucks, tractors and trailers. Sale/Leaseback financing is a unique form of equipment leasing that is an effective method for generating capital for your business needs. You can use your equipment to get working capital for your business. Another type of equipment leasing product where the company/lessee is not 100% sure if they want the equipment is called a True Lease or Operating Lease. They lease it for a certain period of time, and at the end of the lease, they can either 1) Buy the equipment at fair market value; 2) Give the equipment back; or 3) re-lease the equipment. Otherwise known as "Purchase Upon Termination" equipment leasing.
The lessee is considered the owner of the equipment and maintains full control of the residual value. This type of equipment leasing is generally less expensive than other leases or conventional bank financing. With a Sale/Leaseback you can use your equipment as collateral to obtain working capital, so productivity never slows down, and your revenue should remain constant. The extra working capital you get can be applied to expanding your business and increasing revenue as it can be used for any purpose. This is a lease where the company is shielded from the drawbacks (and benefits) of ownership. These type of equipment leasing products are better for equipment such as technology, which may have a short shelf life, or equipment the company doesn’t want to retain past the term of the lease, etc.
Advantages Lessee records the equipment as an asset and the lease payments as liabilities on their balance sheets. The Lessor would retain the rights to any depreciation. More working capital is freed up for businesses that do a Sale/Leaseback because the equipment is no longer being financed at a regular bank, nor is it cutting into the lines of credit you have with the banks. You can use those extra lines of credit to expand your business the most effective way possible. A significant benefit is that the monthly payments are also less than on a finance type lease or even a bank loan. This end of equipment leasing option establishes a mandatory purchase price, usually expressed as a percentage, e.g. “a 10% Put.”
The most notable feature with these types of equipment loans are that their structure does not contemplate a full payout of the cost of the equipment as is the case in a “Finance” type lease This is a technique for lowering the equipment leasing payments during the lease term without creating an unknown end-of-lease risk for either the Lessor or the lessee
Tax Benefits The lessee can depreciate the equipment. Up to $500,000 of cost of equipment can be deducted in 1st year. Depends on if it is written as a capital or operating lease. The monthly payment is 100% tax deductible. There is also the balance sheet benefit because having assets that you pay taxes on converted into contingent liabilities may also lower taxes. Monthly rental payments can be deducted as an operating expense The lessee can depreciate the equipment. Up to $500,000 of cost of equipment can be deducted in 1st year

What can you FINANCE

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Computers, software, phone systems and IT equipment
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Energy equipment, including Solar PV
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Medical equipment
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Corporate aircraft
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Printing presses and computer-aided design systems
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Office furniture and cash register systems
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Specialty commercial and municipal vehicles

How it can help your business?

How Equipment Leasing with Orumfy will help your business

  • With Orumfy equipment leasing is flexible and normally doesn’t require a down payment.
  • With many equipment leasing options, the lessee can depreciate the equipment.
  • Equipment Loans let you deduct up to $500,000 of cost of the equipment in the 1st year.
  • Equipment leasing can be used to update equipment and inventory, or for equipment replacement.
  • May be tax deductible.
  • Orumfy offers flexible payment plans.
  • Equipment could be used as collateral to obtain working capital.
  • Working capital obtained from Orumfy can be used to cover everything from vendor down payments to freight and installation.
Grow your business with Orumfy today! lets get started

Things to Consider

Things to Consider for Equipment Leasing with Orumfy

  • When to Use a Capital Lease

A capital lease type of equipment leasing is used much more often than operating leases are. Typically, if you’re purchasing large pieces of equipment that you’ll want to keep as a long-term asset, then a capital lease is the best option for you. If you’re wanting to take advantage of the benefits of owning your equipment, like claiming the depreciation of it, then an operating lease won’t work for you.

  • When to Use an Operating Lease

An operating lease type of equipment leasing is typically the right option if you’re wanting to replace your equipment at the end of your financing term. It may also be right for you if you’re acquiring equipment that has a very short-term shelf life, like technology, or if you’re unsure of whether or not you’ll need the equipment long term.

  • Equipment Leasing vs. Equipment Loans

When you buy equipment and finance it with equipment loans, you own the equipment. Equipment loans just allow you to spread out the purchase price of the equipment over several years. You pay back the principal plus interest over the term of the loan. Plus, in most cases, if you pay off the loan early, you will reduce the amount you pay in interest (there’s no prepayment penalty).

In contrast, equipment leasing is a long-term arrangement to rent equipment. Technically, you don’t own the equipment when you lease it. However, in many cases equipment leasing is virtually indistinguishable from equipment financing except that you don’t save on interest by paying off the lease early.

With equipment leasing, you haven’t agreed to pay off a principal plus interest – you’ve actually agreed to a certain number of monthly payments.

Whether you are a logistics company, restaurant or a medical office, having the right equipment can make or break your business.

Let an equipment loans specialist from Orumfy help you choose the best option for your small business loans needs.

How do you qualify for Equipment Leasing?

How Do I Qualify for Equipment Loans with Orumfy

Orumfy strives to make it as simple as possible for businesses to qualify for the equipment leasing they require. All you need to qualify is:

  • A positive credit history.
  • Bank and credit card statements that cover a number of months (the exact number may vary).
  • Profit and loss statements.
  • Balance sheets.

How does it work?

How does it work?

The process with Orumfy is simple:

  • Orumfy offers a free and quick application for equipment loans (you can also download our application here).
  • Review your offers from Orumfy
  • Provide the necessary documents.
  • Receive Contracts.

What are my tax savings with Section 179 deduction?

Section 179 of the IRS Tax Code allows a business to deduct, for the current tax year, the full purchase price of financed or leased equipment and off-the-shelf software that qualifies for the deduction. The equipment purchased, financed or leased must be within the specified dollar limits of Section 179, and the equipment must be placed into service in the same tax year that the deduction is being taken (for example, the equipment must be put into service between January 1st and December 31st of the year the deduction is to be taken.)

This tax break encourages small businesses to invest in themselves and to purchase equipment sooner rather than later.

  • There are some limits, however, to the amount that can be written off ($500,000 in 2016).The Section 179 deductions decrease dollar for dollar on purchases over $2 million. After the Section 179 benefits are exhausted; Bonus Depreciation of 50% can be taken on the remaining amount of equipment place into service.
  • Section 179 was designed with businesses in mind. That's why almost all types of "business equipment" that your company buys or finances qualifies for the Section 179 deduction.
  • Equipment (machines, etc) purchased for business use
  • Tangible personal property used in business
  • Business Vehicles with a gross vehicle weight in excess of 6,000 lbs (Section 179 Vehicle Deductions)
  • Computers
  • Computer “Off-the-Shelf” Software
  • Office Furniture
  • Office Equipment
  • Property attached to your building that is not a structural component of the building (i.e.: a printing press, large manufacturing tools and equipment)
  • Partial Business Use (equipment that is purchased for business use and personal use: generally, your deduction will be based on the percentage of time you use the equipment for business purposes).

Section 179 Calculator

SECTION 179 calculator

Value of Equipment: $ 100,000
$10,000 $500,000
Estimated Lifetime: 18 years
1 Year 20 Years
Marginal Tax Rate: 35 %
1% 80%
Section 179 Deduction
  • Estimated tax savings year 1
  • Lifetime Benefits
  • $33,056
  • $35,700

Calculate your potential tax savings!

Whether you are a logistics company, restaurant or a medical office, having the right equipment can make or break your business.

Aurmfi is here to help you

Calculate your potential tax savings!

Whether you are a logistics company, restaurant or a medical office, having the right equipment can make or break your business.

Aurmfi is here to help you

Apply to see what is Your small business loan options today!
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