Freedom Financing LLC

 

According to the U.S. Small Business Administration, 8 out of 10 American companies lease all or some of their productivity equipment - office IT networks, computers, phone systems, fax machines, copiers, furniture and fixtures, leasehold improvements, vehicles, heavy manufacturing and construction machinery.

 

Freedom Financing provides companies with the means to finance these

and many other types of personal property acquisitions.

 

The leasing industry is a major source of funds for capital investment. In 1998, more than $207 billion worth of equipment was leased nationwide, mostly by smaller, growth and technology oriented organizations.

Every year a growing number of companies choose to procure new equipment through leases rather than loans. Leasing has gained popularity due to key factors that differentiate a lease from a loan.

A loan requires the end user to invest a down payment in the equipment - the loan finances the remaining amount.  A lease requires no down payment and finances only the value of the equipment expected to be depleted during the lease term. At lease end, the lessee usually has an option to buy the equipment for its remaining value.

A loan usually requires the borrower to pledge other assets for collateral. To secure a lease transaction, the leased equipment itself is usually all that is needed.

When equipment is devalued due to new technology, a loan borrower bears all the risk. Since a lessee has no obligations to own equipment at the end of a lease, all risk of obsolescence is transferred to the lessors.

A larger portion of the financial obligation of a loan is paid in today's more expensive dollars. In a lease, more of the cash flow, especially the option to purchase the equipment, occurs later in the term when inflation makes dollars cheaper.

The use of leasing is continually increasing because American businesses recognize that the value of equipment comes from its use, not its ownership.

Among other key benefits, leasing:

Provides 100 percent financing and sidesteps potential problems like hefty down payments, monthly financing costs and

        shrinking credit lines.

Allows businesses to upgrade to new equipment or add on to existing models.
Provides a predictable, fixed-payment plan while satisfying current equipment needs.
Keeps lines of credit free for other uses.
Allows businesses to acquire equipment of higher quality and in bigger volumes, since leasing translates into less up-front

        cash and low monthly payments.
Provides a hedge against the risk of technological obsolescence.
Preserves cash for other expenditures.
Provides greater flexibility of purchase options.
Reduces paperwork and consolidates billing.
Eliminates the need to maintain complicated depreciation schedules.
Offers potential tax benefits.

 

While leases have many advantages over the traditional loan,

Freedom Financing will assist you in whichever process you're more comfortable with.

We are not tied to doing just lease programs