Common Sense Leasing
United States Equity Funding offers a capital lease, or “$1 Buyout Lease”. This program is a lease contract in which United States Equity Funding retains ownership of the equipment during the lease term. However the lessee will have full use of the equipment, making monthly payments and will purchase the equipment for $1 at the end of the term. With this program the lessee is considered to have the economic characteristics of asset ownership throughout the lease term. A capital lease would be considered a purchased asset for accounting purposes.
United States Equity Funding offers a True Operating Lease which meets FASB 13 standards. An operating lease, also called a “True Lease” is a tax oriented lease that meets the Internal Revenue Code and FASB 13 accounting tests allowing the lessor to claim the tax benefits of ownership. This type of lease is beneficial for businesses that want to keep a lease off of their financial statements. With an operating lease, only the right to use the property is transferred and not the actual ownership of the asset. The lessee is only required to make monthly “rental payments” and record the operating expense of the property and it does not affect their balance sheet. An operating lease forces the lessee to assume some risk of ownership, but also allows them to enjoy some tax deductions due to the depreciation of the asset as well as the interest paid on the lease. An operating lease also gives a lessee the option to purchase the equipment for fair market value (FMV) at the end of the lease term.
Operating versus Capital Leases
The USEF Trac Lease program is a tax-oriented lease that is designed specifically for commercial vehicles and trailers. This lease contains a Terminal Rental Adjustment Clause (TRAC) that guarantees your business a certain residual price for the vehicle when the lease ends. This is the most common type of lease for business owners who want the option of buying the vehicle for a pre-determined price at the end of the lease.
- No down payment required
- Lessor gets tax benefits of ownership and passes these benefits to you in the form of lower monthly payments
- Cash availability can be matched with special structures such as seasonal, step-up or step-down payments
- Ownership: you retain full control of the vehicle at the end of the term if you choose to own it
- Guaranteed residual price
Types of Equipment Financing Programs we offer:
100% Equipment Finance Program
United States Equity Funding can finance a wide range of new and used equipment, technology and software. Finance 100% of any capital purchase including soft costs like training, maintenance, freight, installation and taxes.
General Micro-Ticket Application-Only Program
Program offered from $1,000-$30,000 in equipment acquisition with no financial records required. We only require our one page application.
General Small Ticket Application-Only Program
Program offered from $30k-$250,000 in equipment acquisition with no financial records required. We only require our one page application and three most recent business bank statements.
Medical Equipment Application-Only Program
Program offered for up to $300,000 in medical equipment acquisition with no financial records required. We only require our one page application and three most recent business bank statements.
General Equipment Mid-Ticket Program
Program offered from $250,000 to $20,000,000 in equipment. This program requires full financial disclosure for private companies. Public companies only require one page application.
Seasonal Equipment Financing Program
Seasonal “flex-pay” offers up to 90 day deferred payment. Program is designed for seasonal businesses and helps conserve cash flow and more closely matches the monthly revenues of seasonal businesses during down months. ($100 step payment required)
12 months same as cash Program
United States Equity Funding offers this creative program for vendor partners looking to increase sales. Customers who request a “zero down no interest” program can be offered this creative solution.
Start-Up Equipment Financing Program
Secure up to $75,000 in financing for businesses with as little as one day in business. Additional financing is available with collateral or structuring.
Equipment Refinance & Consolidation Programs
Refinance existing purchases or choose to consolidate existing debt with a new equipment purchase. Merge them onto one schedule and lower your monthly payment! This program will help to free up your cash flow and streamline your monthly payments.
Master Lease Program
Get up front financing approval and draw off those funds over time through a simple one page lease contract. Each draw off the existing approval is subject to final credit review and may require additional documentation and financials depending on request.
Equipment Leaseback Program
United States Equity Funding will advance up to 50% of the appraised market value of qualified equipment you currently own. This program is intended for clients who have purchased equipment and wish to use the proceeds from new financing as a source of additional working capital or to pay off existing high interest debt.
Pre-Funding & Progress Funding Programs
United States Equity Funding will advance 50%-100% of the equipment cost to the vendor upon credit approval of the distributor. We are fully invested in providing our customers and partners with the right solutions for their needs, and we understand not all industries provide next-day delivery and/or installation of equipment. We also understand the cash-flow crisis a business may experience if you have to provide a cash payment to obtain the equipment, only to wait until the leasing process is complete before funding is received. United States Equity Funding offers a pre-funding program which initiates payment to the distributor to get much needed equipment shipped to the customer. United States Equity Funding also offers progress funding when a larger project needs to be funding in stages. The Progress Funding program is beneficial when periodic disbursements to vendors are required for equipment to be shipped and work to be completed. This creative financing program is used to get larger lease schedules funded without our customer having to go without much needed working capital during the process.