iCFO Capital  offers Equipment Lease Finance to Growth/Early Stage, Late Stage, and Mature companies. Our unique Lease offerings cover the spectrum of asset classes and iCFO Capital  has access to the most aggressive and accurate market pricing and product structures.

Rather than using valuable working capital or bank lines of credit on a depreciating asset, equipment leasing allows businesses to conserve cash flow for continued growth and operations and match the equipment’s cost to benefit.

An Operating Lease is a lease structure typically used to get equipment on a short-term basis. This type of lease is beneficial for businesses who want to keep their leases out of their financial statements. With an operating lease, only the right to use the property is transferred and not the actual ownership of the asset. The lessee is only required to record the operating expense of the property and it does not affect the balance sheet.

An operating lease allows the lessee to enjoy tax deductions due to the depreciation of the asset as well as the interest paid on the lease. However it is treated as an asset and a liability so it must be recorded in the books. 

Typical terms of an Operating Lease are 36 months with a Fair Market Value residual. At the end of lease, the borrower has the option to continue leasing, return the equipment, or purchase at the residual amount, typically determined by a third party appraisal.

Equipment leasing is a loan in which the lender buys and owns equipment and then rents it to a business at a flat monthly rate for a specified number of months. At the end of the lease, the business may purchase the equipment for its fair market value price, a fixed price (or predetermined percentage amount), continue leasing on revised schedules, lease new equipment, or return the equipment to the Lender.

Equipment Leasing comes in a mix of structures and terms may vary depending on the client’s particular needs and or current financial and credit position.