Preserving your Cash Flow – like the example above you pay as you go to maintain or increase your cash flow. With leasing, you need only a minimal initial investment to get the equipment you need, and you can comfortably spread your payments out over time. This allows you to preserve your working capital for the operation and growth of your business.

Increased Flexibility – Your leased equipment needs will grow and change along with your business. Equipment leasing provides you the option to take on additional equipment or upgrade the equipment you currently possess.

Never Obsolete – Your equipment never becomes obsolete because you can pivot to the newest technology or model when your lease expires. If, purchased cash, the tendencies to upgrade are diminished and customers typically hold on to outdated unproductive equipment leaving them in a competitive disadvantage to competitors who  acquiring the latest most cost effective technology.

Tax deductions – Take advantage of the tax deduction limits for equipment as set out in section 179 of the US tax code, In some cases as much as 100% pf the equipment cost, up to specified limit, can be immediately deducted from your taxable income.

Maintain your credit – Choosing to lease your equipment allows you to leave your Bank Lines of Capital untouched and available for short-term and working capital financing.

Easy Approval – Circumvent the rigorous requirements and long waits associated with traditional financing at the bank. Our simple application process and document requirements streamline the process.

 Lease Program Details

If there’s one thing all businesses require, it’s equipment of some sort. No one understands that better than the financial consultants here at Fervent Business Capital, which is why we offer a broad portfolio of equipment financing programs. We want businesses of all sizes to be able to get equipment, even if they can’t afford to spend the money upfront for what they need. Here’s what you should know about our equipment leasing and financing programs and how they can benefit your business.

Lease Programs & Criteria

Fair Market Value Lease (FMV): Operating Lease

Fair market value (FMV) is a term for the current value of an asset, or what something would sell for on the open market. Fair Market Value leasing, also known as an operating lease, offers end-users flexible financing solutions. FMV leasing allows end-users access to equipment assets with the flexibility of ownership, through options such as extending the lease terms, purchasing the equipment for a fair market price, or returning, or upgrading it, at the end of the lease.

End-users simply pay a fixed amount per month, in accordance with their leasing contract, and essentially gain temporary ownership of the equipment. The FMV lease typically offers the lowest monthly payment, is the most flexible lease structure, and may allow end-users to obtain tax advantages.

At the end of the lease term, end users have the option to purchase, return, or continue to pay for use of the equipment according to the terms of the original agreement. While Fair Market Value leasing is the most flexible leasing option, it’s the least calculable when it comes to anticipating a purchase price. 

Best Use of Lease

• Equipment with short useful life
• Rapidly depreciating equipment
• Short technology obsolescence window
• Continual upgrade necessity
• Leasing only a percentage of the asset Lowest cost lease payment

Structure of Lease & Term

• 12 to 60 month terms are most common.
• End of term options: 10% 15% 20% & open ended FMV purchases options are available.

End of term options:

1. Purchase for a stated or determined Fair Market Value (FMV) amount.
2. Continue Leasing
3. Return equipment and upgrade to latest technology or model.

Dollar Buyout ($1BO): Capital Lease

A $1 Buyout Lease, also called a capital lease, is similar to purchasing equipment with a loan. With this type of lease, there is a higher monthly payment compared with an FMV lease, but at the end of the lease term, the lessee purchases the equipment for $1. Since it is very similar to taking out a loan on a piece of equipment, this type of lease is often used when a business plans to keep the equipment for a long period of time, or when equipment obsolescence isn’t a concern.

Best Use of Lease

• Equipment with longer useful life
• Slower depreciating equipment 
• Longer technology obsolescence window
• Low upgrade necessity
• Financing/Leasing the Asset to own at end of term 
• Finance equipment in lieu of maxed out Bank & Trade Lines

Structure of Lease & Term

• 12 to 60 month terms are most common. With 72-84 months on certain qualifying assets and credits.
• End of term options: $1 Buyout

End of term options:

1.      Purchase for $1.

Sale Lease Back 

Simply put, a sale leaseback is when we purchase equipment that you own outright and then lease it directly back to you. This will provide your business an immediate cash infusion and then at the end of the term, you will own your equipment outright again. Excellent choice for companies who find themselves in an unfavorable Cash position and need less expensive Work Capital without losing the utilization of their equipment.

Best Use of Lease

• Need working capital
• Credit challenged position 
• Needing to unlock idle equity capital in owned assets
• When additional cash is needed for expansion or cash flow challenges 

Structure of Lease & Term

• Individually crafted for each situation
• $1 Buyout & FMV available
• 24-60 Month Term
  

Distress & Challenged Credit – Storied Credit Lending

We understand that behind your bank statements & financials, is a real business with real people and real potential. Fervent Business Capital encourages Storied or Challenged credit clients who have a compelling business plan and a firm understanding of the execution necessary to regain operational success. FBC will listen to your situation and together with our credit and underwriting partners create a solution to provide the  needed Leasing structure that will “help you live to fight another day”. We want to hear your story! 

Best Use of this Program

• Un-bankable credit
• Turned down by other private lenders 
• Past Success, but temporary challenge in current financials
  
• Unconventional structure needed
• Need someone to listen, rather than decline your deal based on structured underwriting.
• Exhausted most or all plausible options without success.

Structure of Lease & Term

• Individually crafted for each situation
• FMV Purchase Option Preferred
• $1 Buyout available, approvals more challenging 
• 24-60 Month Terms
• Down Payments Required 10-25% of Transaction
• Other risk mitigation requirements may apply
• Full 2yr Financial Package Required

Municipal and Government Programs

You don’t have to wonder if you’ll receive equipment leasing or financing approval if you apply for this program. Armed services, libraries, police departments, and other municipal and government agencies are guaranteed to be approved through this program.

Best Use of this Program

• Government Agencies – State & Local, Federal
• Vendor doesn’t provide Equipment Finance
• Need less expensive alternative than vendor is providing
• Knowledgeable finance partner who understands Government  Procurement Contracts & Schedules

Structure of Lease & Term

• $1 Buy Out
• 24-60 Month Terms
• $0 Down
• Limited documentation requirements