Loan: A loan requires the end user to invest a down payment in the equipment. The loan finances the remaining amount.

Lease: A lease requires no down payment and finances only the value of the equipment expected to be depleted during the lease term. The lessee usually has an option to buy the equipment for its remaining value at lease end. By signing the lease, the lessee assigns his or her purchase rights to the lessor, who already owns or who then buys the equipment as specified by the lessee. When the equipment is delivered, the lessee formally accepts it and makes sure it meets all specifications. The lessor pays for the equipment and the lease takes effect.

Loan: A loan usually requires the borrower to pledge other assets for collateral.

Lease: The leased equipment itself is usually all that is needed to secure a lease transaction.

Loan: A loan usually requires two expenditures during the first payment period; a down payment at the beginning and a loan payment at the end.

Lease: A lease requires only a lease payment at the beginning of the first payment period which is usually much lower than the down payment.

Loan: The end user bears all the risk of equipment devaluation because of new technology.

Lease: The end user transfers all risk of obsolescence to the lessors as there is no obligation to own equipment at the end of the lease.

Loan: End users may claim a tax deduction for a portion of the loan payment as interest and for depreciation, which is tied to IRS depreciation schedules.

Lease: When leases are structured as true leases, the end user may claim the entire lease payment as a tax deduction. The equipment write-off is tied to the lease term, which can be shorter than IRS depreciation schedules, resulting in larger tax deductions each year. The deduction is also the same every year, which simplifies budgeting (Equipment financed with a conditional sale lease is treated the same as owned equipment.).

Loan: Financial Accounting Standards require owned equipment to appear as an asset with a corresponding liability on the balance sheet.

Lease: Leased assets are expensed when the lease is an operating lease. Such assets do not appear on the balance sheet, which can improve financial ratios.

Loan: A larger portion of the financial obligation is paid in today’s more expensive dollars.

Lease: More of the cash flow, especially the option to purchase the equipment, occurs later in the lease term when inflation makes dollars cheaper.

Do you have more questions about leasing vs. loans? We’d love to chat! Call the number above in the blog header, or find us on Twitter and Facebook!

For more information on Section 179 tax savings, please consult our website: What is Section 179?

For all of your financing or leasing needs, call US Capital at 866-590-8506.  We look forward to hearing from you!

Lessees vary widely from small, one-person operations to Fortune 100 corporations, and the kinds of equipment being leased are just as diverse. Transactions range from a few thousand dollars worth of equipment (such as fax machines) to multi-million-dollar cogeneration facilities, telecommunications systems, medical equipment (including CAT scanners and MRI imaging), office systems, computers, commercial airliners, and transportation fleets. There is no end to the types of equipment companies lease.

In 1999, it is estimated that approximately $226 billion worth of equipment had been leased. This number represents approximately 30% of all equipment purchases. Does your company function on the backs of commercial equipment? Restaurants, airlines, printers, engineers – the number of industries you can think of off the top of your head is virtually innumerable.

Does your company have equipment that needs replacing? Are you still trying to take off? Let us know! Call us at 866.590.8506 and we’ll talk to you TODAY to see how our company can help yours.

Also be sure to find us on Facebook and Twitter!

But what does this mean? For starters, it means that businesses can afford to grow. It could also mean that businesses are showing improvement with their debt management.

This may seem counterintuitive at first. After all, how could having to borrow money indicate strength in a business? Well, in general, a business isn’t going to borrow unless they’re confident they can pay it back. This shows that the growth they expect the borrowed money to help with is pretty much a certainty.

So how can your business help its chances of getting a loan? Here are five tips ChicagoBusiness.com:

1. Keep your personal credit score high. This may be a given, but you can never stress it enough. Banks want to see a a history of financial reliability before they’re willing to send money your way.

2. It’s still all about people. The people who give you loans are exactly that: people. They’re much more willing to help you out if you go out of your way to make a connection with them. Keep in touch with them, even when you don’t need anything. These relationships can be very beneficial to you and the bank!

3. Know your statements. The best way to impress someone with your business is by knowing EVERYTHING about your business. Don’t just let someone else take care of it all– become involved, and be active in presenting this information to the bank. It shows dedication to your work and business savvy.

4. Be able to forecast the future. If you can prove that you consistently know what’s going to happen for your business, the bank is going to be more inclined to trust you when your future predictions.

5. Borrow when you don’t need it. You don’t want to take this one too far, but it can be a great credit builder. It shows that you know when to play it safe and when to take a risk.

(source)

“For over 100 years, Chicago has specialized in designing and building systems to feed, dry, iron and fold washed sheets, pillowcases and table linen, as well as tumble dried towels, blankets, patient gowns, scrubs and specialty items: says Bruce Johnson, Chicago President.  “We are one of the few finishing equipment manufacturers in the world that designs and fabricates its own products, including electronic controls.  Having a partnership with US Capital allows us to offer powerful financial programs to our customers that will enable them to purchase our equipment and invest in their companies using a variety of cost-efficient plans.

John Hofmann, CEO of US Capital says: “We are proud to have been selected by Chicago as they are one of the industry’s true leaders.  The pairing of Chicago’s outstanding product lines and professionalism with our solid experience in providing financing to the commercial laundry and dry cleaning industry is an exciting opportunity for us”.

For all of your financing or leasing needs, call US Capital at 866-590-8506.  We look forward to hearing from you!

US Capital CEO, John Hofmann congratulates Chris Michalek for 5 years with the company.

US Capital is pleased to celebrate the 5 Year anniversary of Chris Michalek!  Chris is Senior VP, Operations for US Capital and is responsible for ensuring the continued growth and development of the company’s vendor program and direct origination segments through continued bank diversification. Chris brings over five years of experience facilitating financing for all credit profiles.

Prior to joining US Capital, Chris was responsible for architecting, growing and ensuring consistency of enterprise corporate web hosting environments for Fortune 500 firms.  Chris earned a BBA from the University of Illinois in Management Information Systems.

“Chris is a valuable member of the US Capital team and we look forward to working with Chris for many more years,” stated John Hofmann, CEO. “Chris’ dedication and level of service are demonstrated every day as he maintains and builds relationships with vendors and customers.”

CRYSTAL LAKE, Ill. June 21, 2012 – United States Capital Corporation, provider of innovative commercial equipment financing and leasing solutions to businesses, is pleased to announce that Anixter has chosen US Capital to be its preferred leasing partner to offer innovative financial products to their customers in North America.

Anixter is the world’s leading distributor of communication products, electrical and electronic wire and cable and a leading distributor of fasteners and other small components. This publicly traded company provides over 450,000 products to its diverse customer base through a network of 225 strategically located distribution facilities worldwide. “Having innovative financing and leasing programs is an important component of our customer experience because it offers flexibility for businesses to grow in these challenging times.” said Steve Balk, Anixter’s Vice President of Global Shared Services. “By having these leasing solutions for our customers, we can better help them focus on making relevant purchasing decisions around topics which matter most ─ technologies, applications, and deployment considerations.” With annual sales exceeding $6 billion, Anixter serves over 100,000 customers in over 50 countries.

“US Capital is proud to support Anixter’s sales efforts by providing a variety of financial products including commercial equipment leasing” says John Hofmann, CEO of US Capital. “Since its founding in 1957, Anixter has had one common mission, which is to provide customized solutions that meet their customers’ diverse needs. US Capital has a similar mission, which is to provide a variety of custom financing solutions to help our customers achieve their growth objectives. Financial products are an important contributor to those objectives in any economic environment; today more than ever.”

Since 1989, US Capital has been providing businesses with the financing they need for the equipment they want to operate their business. US Capital also provides custom finance programs to help companies sell their equipment to their customers.

For all of your financing or leasing needs, call US Capital at 866-590-8506.  We look forward to hearing from you!

This location was a coin laundry for years with tight aisles and poor maintenance. The equipment was a mix of multiple brands and the interior was dark and dirty. Here are some pictures of the location before the renovations were started. Sunny & Andy Zheng had the vision and desire to re-open the laundry store near their Hunan East Chinese Restaurant in the same plaza.

The store has a balanced mix of 18lb, 30lb, 40lb and 60lb washers matched to 30lb and 45lb stacked dryers. The store is fully attended offering drop off service, soap & soda vending and a bill changer. There are wide aisles, nice seating areas and plenty of folding space with carts.  There is plenty of parking and is now a bright store with large windows and extra lighting.

Check out the video here: Silver Hill Laundry

Call Malcolm Caldwell at 1-800-670-7599 for more information or if you are ready to transform an old run down coin laundry into a modern business.

How can US Capital help you finance your next project?  If you have financing or leasing needs, please contact us via phone: (866) 590-8506 or on the web at www.uscapcorp.com.  We look forward to hearing from you!