ACP Finance offers both straight financing and lease options to address all of your equipment financing needs.
Lease Products
Within our lease products, we offer operating leases and finance leases. Depending on the equipment, we can offer the right product for your tax needs as well as addressing any existing loan covenants.
Operating Leases
Operating leases are off balance sheet allowing you to expense 100% of the monthly lease payments rather than taking depreciation. The leasing company retains ownership of the equipment and at the end of the term, you have the option to purchase the equipment for the fair market value, return the equipment or continue to rent it. If your intention is not to own the equipment and upgrade at the end of the lease term, an operating lease is a great option for you.
Finance Leases
Finance leases, often referred to as Capital leases, do not fit operating lease guidelines and are an alternative finance vehicle. With a finance lease, the leasing company retains ownership of the equipment and at the end of the lease term, you have the option to purchase the equipment for $1.00 or some other pre-agreed upon fixed price. You cannot expense the monthly payments with a finance lease as you can with an operating lease, but you can take advantage of all of the benefits of ownership including depreciation allowances and Section 179 Tax Deduction.
Equipment Finance Agreements
Equipment Finance Agreements (EFA’s) are straight finance programs where the customer retains title to the equipment and the finance company has a security interest in the equipment. Since you have title to the equipment, there is no purchase option at the end as in a lease product. With EFA’s you can take advantage of all benefits of ownership including depreciation allowances including Section 179. EFA’s are an alternative to bank financing and are preferred over bank financing due to their ease of approval, flexibility in structure, and minimal down payments.