Understanding Loan Terms

Using A Wrap Lease To Obtain Multiple Pieces Of Heavy Machinery For A Project

Posted by on Jul 27, 2015 in Uncategorized | Comments Off on Using A Wrap Lease To Obtain Multiple Pieces Of Heavy Machinery For A Project

If your company needs more heavy equipment for an upcoming project, then you should consider leasing it with a wrap lease. In many cases, leasing multiple machines under one wrap lease will save your company a lot of money over the course of a project. Here is some information about heavy equipment leasing under this type of lease, and how it can benefit your company: Wrap Lease Basics While you can lease heavy equipment in the same way as you lease automobiles, a wrap lease is a special type of lease arrangement that allows you to bundle multiple pieces of equipment into a single lease. Rather than having one lease for a backhoe and another lease for each of three loaders, instead you can have a single wrap lease that covers all four pieces of equipment. This results in a lower payment and lots of flexibility when it comes to terms and length of the lease. Wrap Lease Flexibility Leasing heavy equipment for your company with a wrap lease has many advantages, including: your ability to choose the lease term the ability to trade up and get new machinery when necessary no long-term ownership of obsolete equipment If you company wants to buy a specific piece of equipment that you cannot locate on the market new, then you always have the option to lease the same type of machine to get the job done until you find the machinery you ultimately want to purchase. Wrap Lease Lowers Total Cost of Ownership and Transfers Obsolescence As soon as your company purchases a new piece of equipment, it starts to become obsolete and cost your company additional funds to fuel, insure, operate, and store. The sum of these costs is known as the machine’s total cost of ownership. Leasing lowers you total cost of ownership in the following ways: low or no down payment lower monthly payments leaves your credit lines open frees up monthly capital In addition, when you company buys assets, they become part of the taxed worth of your business. When you lease a piece of equipment, then it simply becomes a monthly expense. In some circumstances, leasing will lower your company’s tax burden. Conclusion Purchasing heavy equipment, or leasing it on multiple lease agreements, often results in more money leaving your business’s coffers each month than if you utilized a wrap lease. If you want more information about the heavy equipment lease options available to you, then you should speak with a local construction equipment financing...

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