Equipment Finance Can Produce Very High Leverage
February 26, 2010 3:53 am BusinessOf all the different forms of business financing, equipment finance sources provide the highest leverage for the least amount of cost and this occurs in two different forms.
For equipment loans, high leverage and low rates are acheivable via government insured bank loans that can finance up to 90% of the asset value for prime plus two rates.
For equipment leasing, the rates will tend to be a bit higher than bank loans for equipment, but the leverage can be 100% or higher in many cases. The greater than 100% financing occurs when there are equipment delivery and installation costs involved that can be added into the lease.