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Bar equipment leasing provides the answers

If you’re in the bar business – or just getting into it – you have a lot of concerns when it comes to the equipment you’ll be purchasing. You need to juggle quality, cost, convenience and terms when deciding on how to obtain your equipment. Bar equipment leasing provides answers to all your questions. Once you’ve chosen your bar equipment, consider equipment leasing to free up cash for operations.

Quality of your bar equipment

Health concerns are always in the forefront when it comes to the food industry, so you want to be sure you have high quality bar equipment. Leasing your bar equipment allows you to choose from the newest models and brand names of a variety of equipment without the staggering initial investment of your capital.

Some types of bar equipment you can lease:

•Neon signs
•Griddles and grills
•Food warmers
•Paging systems
•Credit card machines
•Computers and servers
•Ice machines

Cost of buying all the bar equipment you’ll need

Your costs are a major factor in the concerns of starting or renovating a business. Leasing your bar equipment doesn’t affect your bank lines of credit, so the bulk of your capital is still free for other important costs. In addition, as bar equipment depreciates you’ll have the option of leasing new equipment without the hassles and expenses involved in removing your old equipment and purchasing new items.

Convenience of leasing bar equipment instead of buying

There are so many conveniences with leasing the only question is, which factor is most important? Is it the extra capital you’ll have for essential, and sometimes unexpected, startup purchases? Or perhaps it’s the freedom of leasing to update your bar without having to buy all new equipment? Or it may even be the stability of regular payments instead of the “feast and famine” that often comes with buying.

Terms of bar equipment leasing, and why Advantage works for so many business owners

Advantage’s bar equipment leasing process is faster, simpler, and often less costly than other equipment financing alternatives. In fact, our leases are always less costly than normal credit card lines. Read more about the advantages of equipment leasing on your cash flow, tax returns and capital availability, or for information on the quick and easy lease application process. For an instant quote, try our equipment lease calculator.

With today’s economy, equipment manufacturers and dealers have new struggles. Budgets are tighter, customers are spending less, and banks have less money to borrow. But that doesn’t mean you can’t increase your sales. In fact, there’s a way to close more sales by offering a way for customers to more easily purchase your products. These are the major benefits of equipment leasing.

The key is to offer consumers more options. Instead of marketing the total purchase price of the equipment, advertise a monthly payment. (Think car dealers – how often do you see a total price advertised?) A monthly price can help customers see exactly how they can afford your equipment based on their monthly cash flow. This more affordable payment also attracts buyers who may have previously wavered on the price, since they don’t need to go through the bank for a large loan, or tie up all their cash reserves. Figuring a monthly payment is just the first step. Next, advertise your own financing programs. By providing in-store (or on-website) financing, you can maximize impulse buys, increase upselling opportunities and minimize the hassles buyers have with time-consuming outside finance methods.

So how do you provide in-store financing?

Fortunately, it’s simple. You partner with an equipment leasing company which can help you present a completely seamless transition to the buyer. Depending on which company you work with, your business can receive all of the forms and paperwork, guidelines, instantly calculate a monthly payment, and even a get a personalized website banner and landing page that outlines the leasing arrangements. The leasing arrangement helps you get the sale, but the leasing company does all of the work.

Is leasing right for your customers?

The Equipment Leasing and Financing Association (ELFA) research shows that eight out of ten U.S. companies lease some or all of their equipment. And nine out of ten say that they will use equipment leasing again. Of all the ways to acquire equipment, leasing is the method most frequently used for all equipment types. According to the U.S. Department of Commerce, U.S. businesses acquired approximately $582 billion in capital assets during 2002 and, of that, about $280 billion were leased. This translates to about 31% of all equipment as being acquired through leasing. ELFA predicts that leasing will continue to grow by at least 6% annually.

If you haven’t considered leasing before, this is the time to do so. Equipment leasing provides a faster turnaround than working with a bank, frees up working capital, and can offer tax benefits. Leasing benefits can be maximized when working with a company that provides individualized and flexible payments, such as seasonal payments, skipped payments, advance payments and no pre-payment penalties. Choosing a direct lender provides flexibility, increased approval ratio, and a quick turnaround that allows you to personalize the leasing process to fit your business.

Ready to start offering leasing to your customers?
Find out how easy you can get started today by applying for our vendor program.

Take Advantage of the Benefits of Equipment Leasing

Advantage Equipment Leasing is based in Milwaukee, Wisconsin and we serve clients nationwide in the small ticket category. We are not brokers, so we can offer you better rates. And since we lend directly to you, we offer more flexibility on payments, such as no penalties for prepayment, and a personal approach that you don’t receive with computer generated companies.

Contact us online or call us at 800.949.7040. .

Business Equipment Financing

In most small businesses, there’s a point where business equipment financing decisions need to be made. Many times, the needs are not high enough in dollar value to justify the hassle of taking out a bank loan, but are too high to consider putting them on your credit cards, even though that may be a convenient option.

If you’re in a situation like this, and need $5,000-$200,000 worth of business equipment financing, there are other options. Advantage can help you with business equipment financing that’s much easier than getting a bank loan, with lower interest than a credit card.

How do we do it? Our business is entirely focused on serving customers just like you. Banks are mostly interested in “big loans” for real estate or operations (many will only talk to you if you want to borrow more than $500k), and credit cards, well, let’s just say they don’t really care what you buy, as long as you pay them a lot of interest.

Advantage has ready capital for your business equipment financing, and we can get it in your business account, fast. Most approvals take only one business day, and you can get your equipment as soon as your vendor can deliver it. Which means you can also get productive, fast.

Why not give Advantage business equipment financing a try? We serve customers nationwide from our friendly offices just outside of Milwaukee, Wisconsin. All you have to do is fill out our online financing application, or just pick up the phone and chat with one of our financing experts. You’ll see how easy, affordable and convenient it is to get the business equipment financing you need.

 Applying for Business Equipment Financing

For more information on small business funding, contact Advantage.




Investigating the types of finance companies and types of leases

Whether you are starting a business or have an established one, you will at one time or another work with a finance company. Finance companies are labeled by the way they are structured. This structure can make a difference on the advantages and disadvantages that they offer your business.

Here are the different finance company structures:

1.Bank Affiliated – This finance company frequently can provide very competitive interest rates. They are also good for relationships – especially if it’s your bank and you have open credit availability. You may not want to choose this option if you are maxing on your conventional credit or it is a competing bank. Banks can be very territorial. For example it is not a good idea to choose a Chicago-based finance company if you are buying equipment for your “Dallas” operation. Many banks may be limited to do business in the state where they are located.

2.Independent – An independent finance company has the greatest flexibility, will finance almost any type of equipment, and can offer very competitive rates although not usually as low as the banks or the captives (equipment suppliers).

3.Brokers – This is generally considered the most expensive form of leasing as they typically turn a transaction around and sell it to an independent leasing company or bank affiliated company. They may need to get the third party’s approval in order to get the transaction completed. They can typically get “bruised” credits approved through higher risk sources.

4.Captive – These are owned by the equipment suppliers and can provide very low rates because of their familiarity with the product. They also may use a lease as a “loss lead” to move equipment. They typically can only finance their products and will not lease products from multiple manufacturers. Some independent leasing companies may become a manufacturer’s “captive” finance company when the manufacturer buys down the rate, making it cheaper for the end customer.

Since leasing is considered a viable option for equipment financing, let’s also review the types of leases:

Operating Lease – This is the typical “Off Balance Sheet” type of lease. It is typically a shorter-term lease and frequently is on equipment where there is a high likelihood of it being raised when the lease ends, such as high-tech equipment, computers, or high-usage copiers. It answers 4 criteria as established by the Financial Accounting Standards Board (FASB):

1) Ownership of the property does not automatically transfer to the lessee at the end of the lease term.
2) The lease does not contain a bargain purchase option.
3) The lease term is less then 75% of the useful life of the equipment.
4) The present value of the lease payment is equal to less then 90% of the cost of the equipment.

Under this scenario, the payments are an expense and no asset or liability is recorded on the balance sheet. The accounting profession is playing with these standards; within the next 5 years there may be no off balance sheet transactions. If your lease meets these standards, then the payment can be expensed. Although if your financial statements are not audited, the IRS has a looser definition of what constitutes an operation lease. Typically they will allow this treatment for any lease with at least a 10% purchase option.

Capital Lease – This is also typically called a finance lease. It is an asset and liability issue and the lease typically has a bargain purchase option of $1.00. Companies who use this type of lease will do so for a variety of reasons of which we have covered earlier, primarily for cash flow management, flexibility, fixed payments, and tax deductibility.

Sale/Leaseback – This is a situation where a company has purchased and is using the equipment, which they then sell to a leasing company, who in turn charges rent for the usage. The main reason for doing a sale/leaseback is so that a company, which has recently paid cash for a piece of equipment, realizes that they could have put the cash to better use.

Trac Lease – This is for vehicles only. In this lease, the lessee guarantees the lessor they will not suffer a loss on the residual buyout at the end of the lease. Typically these types of leases are done with semi-tractors and trailers.

In the end, you will want to seek out and talk to several different sources before you decide on a finance company that you will want to work for now and in the future. Many companies choose a lease/finance company because they may have the cheapest rate. Sometimes rates may not be the most important factor, it could be flexibility, ease of working with the finance company, or a company’s willingness to work with you in the future. Whatever you decide, make sure you feel comfortable with the people that you are working with, because in the end, they will be the ones that will be able to help with your company’s future expansion plans.

In your search, consider Advantage Equipment Leasing for your finance company. We are based in Milwaukee, Wisconsin and serve clients nationwide.

Discover the advantages of using Advantage as your finance company.

Contact us online or call us at 800.949.7040.

Please click below to read our article on polishing equipment leasing in Polishing Inc.

polishing magazine coverpolishing equipment leasing article


Estimate your monthly lease payment with our equipment lease calculator. Are you ready to explore options for polishing equipment leasing? Contact us to find out more.

Commercial Equipment Leasing with Advantage Leasing

Motors, machinery and furnaces – the commercial equipment that keeps your business running, literally. But since commercial equipment purchases can be a large portion of your budget, especially if you are a business start up company, consider financing options that maintain cash flow and shelter your finances, such as commercial equipment leasing.

Commercial Equipment Leasing: Equipment You Can Lease

• Washers and dryers
• Transformers
• Electric motors
• Furnaces, boilers and water heaters
• Air conditioners
• Refrigeration equipment
• Vending machines
• Conveyors and machinery

Payment options for commercial equipment

Bank loans, credit cards and leasing are common options for commercial equipment purchases since they offer payment plan options that conserve cash flow. Commercial equipment leasing, however, offers advantages over credit and bank loans:

Commercial equipment leasing finances 100% of the equipment cost leaving working capital for other needs.
• Equipment leasing also offers lower interest rates than credit cards.
Commercial equipment leasing does not call for a down payment that bank loans typically require.

Saving for future financing needs

Protect your financing with commercial equipment leasing. Since commercial lease payments are essentially pre-tax dollars, they oftentimes can be treated as a fully tax deductible expense. This is a good conversation to have with your tax preparer or accountant.

Keeping your commercial equipment up to date

Maybe you were considering buying that high-efficiency furnace or the automated equipment to maximize productivity, but the initial cost was steering you away. Since commercial lease payments allow you to essentially pay as you use the equipment and pay in low-interest installments, cash flow may be available for the more expensive commercial equipment upfront, which essentially will save your business in proficiency in the long run.

How to get started leasing your commercial equipment

The leasing process is quick and easy. Complete our lease application form or call us today at 800.949.7040 to get started. Or if you still have questions on whether there are advantages of leasing your equipment, give us a call, that’s what we’re here for.