Any business essential equipment can be financed, from trucks to photocopiers, priced from a few thousand dollars to millions. New or used equipment can be financed. Even equipment that you already own can be financed (or refinanced) to lower your monthly expenses or free-up your working capital.
- Get the Equipment You Need… and Get It Today!
We respect people that don’t like to be in debt. But, sometimes you need the equipment TODAY, and you just don’t have the cash.
- Minimal Up-front Costs
CapStar can finance 100% of the equipment cost. We can even finance the extra costs like shipping and installation.
- Potential Tax Advantages
Some leases are fully deductible as operating expenses. Some loan purchases can be depreciated quickly. This depends on several factors, so check with your CPA to see if our financing programs can lower your tax bill.
- Keep Your Credit Lines Open
As your company grows, you will need additional capital to finance your growing accounts receivable, inventory, payroll, etc. Bank credit lines are designed for this purpose, and they are hard to get, so don’t use them up for equipment purchases. Many growing businesses make this crippling mistake, and then they are unable to fulfill contracts, or they are unable to endure a slow season.
- Keep Your Assets Unencumbered
Most bank loans include restrictive covenants and blanket liens. These can hinder your business, and encumber all of your other assets (equipment, accounts receivable, etc.). Most of CapStar’s loans and leases do not include these restrictions and liens.
- “Off Balance Sheet” Financing
Some leases are not shown as a liability on your balance sheet. This is important because your company’s strength and credit worthiness is judged by the amount of debt on your financial statements. Too much debt will hurt your ability to get credit or bonding. Check with your CPA to see if our leasing programs can be treated “off balance sheet.”
- Fixed Payments
Back in the 1980’s, interest rates went from 9% to 21.5% in a single year? It could easily happen again. Unlike bank lines of credit with variable rates, our lease and loan payments are typically fixed – no matter what happens to the market tomorrow.
- Tightening Credit at Banks
Rates are low, but your local bank has tightened up on lending – even with their best customers. Many business owners are tired of hassling with their banks when they need equipment, and they are finding better service from independent finance companies like CapStar.