Equipment Financing

What is Equipment Financing

What is Equipment Financing

The Fundamentals of Financing Business Equipment

HOW DOES EQUIPMENT FINANCING WORK?

The equipment itself is considered to be the collateral, which means you don’t have to come up with your own collateral in order to secure the loan. You’ll be provided with a lump sum of money to pay for the equipment, which you then promise to pay back in addition to a set interest rate. This fixed term length means your monthly payments will always be the same.

The length of the loan term will depend on the type of equipment you need, how much it costs, and its expected lifespan. With equipment financing, you own the equipment once you’ve paid off your loan.

Financing equipment means, you’ll never have to pay the full cost of the equipment upfront. Instead, you can spread out the cost of the equipment over a certain period of time, making payments much more manageable.

QUALIFYING FOR EQUIPMENT FINANCING IS SIMPLE!

Just about any business can qualify for equipment financing. You don’t have to have perfect credit, nor any collateral. Our application process is quick and easy.

Within a matter of 48 hours, you can have access to the funds you need to buy necessary equipment to keep your business in operation.

The need to keep up with adding, replacing and repairing your equipment can get really expensive. At Envision Capital Group, our business funding solutions give you the ability to buy the equipment you need with payback options you can afford.

APPLY TODAY to find out just how easy it is.

Section 179

What is Section 179

Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means if you finance a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. This deduction is not automatic and must be elected. In order to elect to take the deduction, you’ll need to fill out Part 1 of IRS form 4562.

What Property Qualifies?

You qualify for the Section 179 deduction if you finance long-term, tangible personal property that you use in your business more than 50% of the time.

Tangible Personal Property

Under Section 179, you can deduct the cost of tangible personal property (new or used) that you finance for your business if the IRS has determined that the property will last more than one year. Examples of tangible personal property include computers, business equipment and machinery/heavy equipment, and office furniture. Although it’s not really tangible property, computer software can also be deducted under Section 179.

You can’t use Section 179 to deduct the cost of:

  • Land or Inventory
  • Permanent structures attached to land (buildings and their structural components, fences, swimming pools, or paved parking areas)
  • Intangible property such as patents, copyrights, and trademarks
  • Property used outside the United States, or
  • Air conditioning and heating units

Annual Deduction Limit – There is a $500,000 limit on the total amount of business property expenses you can deduct each year under Section 179. When first enacted, the Section 179 annual limit was set at a relatively modest $10,000. Over the years, Congress kept raising the limit in an effort to help small businesses during tough economic times.

In 2015, the annual limit was made permanent at $500,000. Because Section 179 is intended to help small businesses, there is also a limit on the total amount of Section 179 property a business can finance each year before a phase-out in the deduction begins. Under these rules, the amount you can deduct each year under Section 179 is reduced dollar for dollar by the amount your business investment financing exceed the annual investment limit.

The annual business investment limit is $2 million (also made permanent by Congress in 2015). The $500,000 annual limit and $2 million maximum business investment limit are indexed for inflation each year starting in 2016. For more information on Section 179 please click here.

Financing For Your Business

Equipment Financing For My Business

Flexible Terms | Competitive Rates | Quick Application

Envision Capital Group specializes in equipment financing, which offers many tax benefits, such as Section 179. You only need to make an affordable monthly payment over a set term length. Submit our brief form: an equipment financing expert will provide you with a complementary quote.

Envision Equipment Financing:

  • ENHANCES CASH FLOW: cash flow is of vital importance to the health of a business, therefore should not be tied-up in your equipment.
  • OFFERS COMPETITIVE RATES: our rates are very competitive. we offer you the benefits and ease of financing – as well as affordability.
  • PROTECTS AGAINST INFLATION: your monthly payment remains the same over the term of the your loan.Pay for today’s equipment needs with tomorrow’s lower-value dollars.
  • PROVIDES 100% FINANCING: Soft costs, like training, shipping, installation, and maintenance agreements can usually be included. So you can rest easy knowing that these associated costs won’t disrupt your cash flow.
  • SIMPLIFIES EQUIPMENT CHANGES: the equity in your current financed equipment can be applied toward the loan or lease of new equipment. We solve the problem of obsolescence.
  • PRESERVES OTHER LINES OF CREDIT: Tomorrow can bring many opportunities. Financing equipment with Envision Capital Group means you’ll have the credit available to take advantage of future opportunities.
  • OFFERS CUSTOM PAYMENT PROGRAMS: we believe in making it simple to do business and making repayment convenient. We offer many payment solutions, including seasonal payment options.

Equipment Financing for My Customers

Vendor 360 – Making It Easier For Customers To Do Business With You

We are committed to helping you sell more equipment, create loyal customers, and drive profits, while simplifying the equipment finance process – these elements are core of Vendor 360. Backed by competitive rates, quick funding, and a unique approach to vendor service, our program will help make you the preferred dealer among customers who purchase the equipment you sell. Vendor 360 is more than just fast, dependable funding. We also offer a variety of marketing solutions to our vendor partners – a true 360° approach.

Your customers need the financial flexibility to seize business opportunities when they arise. With leasing, you give them access to the latest equipment without tying up their lines of credit. Add to that the convenience of a one-stop shop and easy payments, and you have a highly attractive value proposition that can only strengthen your relationship with your customers and make closing deals that much easier.

Through Vendor 360™, we create tailored equipment finance and lease programs for small businesses, middle market companies, manufacturers, distributors, resellers, dealers, systems integrators and franchisors that are designed to help them increase their top and bottom line performance.

What’s in it for you?

Easier closing of sales

Our finance products are fast, flexible and enable you to get your customer the equipment they need, when they need it. Removing financial hurdles and accelerating the sales process.

Customer retention

You can respond with flexible financing options that lock in your customers and lock out the competition.

80% of your customer base wants financing

It’s true – currently, more than 80% of all equipment sales are financed. Offering payment options is now part of the sales process. Backed by competitive rates, quick funding, and a new approach to vendor service, our program will help make you the preferred dealer among customers who purchase the equipment you sell.

Enhanced sales and margin

Offering a financial solution early in the sales process lets you break down costs into periodic payments, making the initial investment less daunting. This in turn reduces margin pressures, as there is less focus on the equipment price.

Opportunities for extension

Offering financing maximizes your opportunities to sell both a more complete solution and additional equipment, often times including soft costs.

Flexibility

Our equipment finance specialist will help you select and structure the payment plan that best fits your customer’s budget and needs.

Dedicated support

Offload the finance hassle. Once your customer has chosen a piece of equipment, our equipment finance specialist will help you process the funding quickly and easily.

Vendor 360 is more than just fast, dependable funding. We also offer a variety of marketing solutions to our vendor partners. From custom website banner links and collateral to analytics and dedicated 800-numbers – a true 360° approach.

BECAUSE HAVING THE RIGHT EQUIPMENT MATTERS!