Equipment Financing & Leasing - LC Alternative Funding
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Equipment Financing & Leasing

What if Your New Equipment Paid for Itself?

(It’s not a mirage)

For companies facing particularly challenging equipment acquisition needs, equipment finance or leasing can be a good financing alternative. If your financial situation and credit are good, and you know the equipment will help generate immediate income, Liquid Capital equipment finance and leasing may be your solution – especially as we include the anticipated profits from your new equipment into our credit approval process.

Whether your business is recently established, fast growing or somewhere in between, new equipment is often critical to achieving your goals or maintaining your success. However, purchasing equipment outright – as you need it – is not usually a viable option, as the scope and timing of such acquisitions are dictated by your available cash.


Depending on your industry, you may require transportation, construction, manufacturing, printing or other types of equipment to help your company grow. Your business may need new computers, office furniture and equipment, phones systems or back-shop equipment to operate more effectively. And in today’s economy, companies of all kinds and sizes are looking to refurbish their lighting and water equipment to save energy, reduce overhead costs and improve their environmental footprint.


Banks, however, aren’t always amenable to financing equipment – and such acquisitions are often too small or too big for their liking. Moreover, you may want to preserve your bank loan capacity for other operational needs or growth opportunities. If that’s the case, you may need to consider an alternative financing solution.


So what do you do?

Equipment finance and leasing lets you use the earnings you generate from your new equipment to pay the monthly payment, cover additional overhead costs and contribute to your profits. This means you can save your cash, lines of credit or other capital-depleting resources for other profit-earning opportunities.


Essentially, once your application has cleared, Liquid Capital acts as your financing broker to find the right leasing company for you based on the equipment you are acquiring. Liquid Capital has relationships with many of the top North American equipment finance companies, many of which only deal through intermediaries like Liquid Capital. The leasing company then finances you by purchasing the equipment; you lease the equipment over a fixed, negotiated term; and you then have the option to purchase the equipment when the lease expires – price and terms depending on which leasing option you select.


Leasing Options

Liquid Capital can help you arrange the equipment leasing option that best suits your organization’s needs.

Purchase the equipment at the end of the lease for a small, pre-negotiated price.

Lease-to-own(stretch lease option)

Purchase the equipment at the end of the lease for a larger pre-negotiated price or renew the lease and get more time to pay it out.

Fair market value lease

Your lease payments are for the use of the equipment only. You can negotiate to buy the equipment at the end of the lease, or you can return the equipment to the lessor (subject to meeting required return conditions).

Equipment financing contract (mainly US)

You make leasing payments according to a contract, however, you are responsible for all taxes.