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.

 

Special Program!!

 

You may be able to sell your equipment for lump-sum cash; then lease back your equipment.

 

WHY?

1. You receive the cash to use as you decide. 

2. You no longer own the equipment; therefore it can not be claimed in any litigation settlement against you.

3. You have turned a Contra-Asset entry (depreciation), or if you have an equipment loan to pay, a Balance Sheet Liability into an Expense. 

 

 *A business expense that may help to reduce your taxes!

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