What Is an Equipment Leasing Contract?

An Equipment Leasing Contract is an agreement by the equipment owner (lessor) to provide equipment for use by the lessee (user of equipment).

How Are Equipment Leasing Contracts Created?

Equipment Leasing Contracts range in length from several months to several years. When the lessee signs the lease they are indebted to pay the equipment owner based on the terms of the lease.

Who Can Benefit from the Sale of an Equipment Leasing Contracts?

The lessor can benefit from the sale of the leasing contract by receiving a lump sum of cash that will allow them to purchase additional equipment to offer for lease.

What is the difference between a capital and operating lease?

This is a question better answered by your Accountant or tax advisor.  However, some leases are often described as "off balance sheet" financing.

What is a Sale and Lease back?

This is an arrangement through which a business/municipality sells its fixed assets for cash and retains their use by leasing them back from the buyer - the Lessor.  This approach is used to accomodate companies that find themselves with such a great investment in capital equipment, that it puts pressure on their working capital.  Lease terms can be up to (5) years and an approved equipment appraisal is usually required.  M&M Funding can assist you in this type of transaction.

 Do you need money to purchase additional equipment or meet obligations? Contact us and let us explain how we can help.