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Question leasing companies?

Discussion in 'Digital Printing' started by Greek, May 13, 2020.

  1. Greek

    Greek New Member

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    Jan 29, 2020
    Pa
    Are there any companies out there that Lease equipment? looking to open a new shop up, looking into my options of financing equipment, or if there is a Leasing company out there. If so, who do you recommend?
     
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  2. Glavin_ID

    Glavin_ID Member

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    Geneva Capital is who we use.
     
    • Like Like x 1
  3. Reveal1

    Reveal1 Active Member

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    In most cases, it doesn't make sense, unless your credit is poor. Borrowing costs are so low, and every year in memory congress passes accelerated depreciation (talk to your accountant for variations in ways to write-down) which make owning versus leasing a no-brainer tax-wise. Regardless of how you finance, keep in mind you will be upside-down almost from day one as there is very little resale value for most equipment, particularly printers. So your goal should be almost immediate ROI or you might reconsider getting in to begin with and outsource until you build a customer base. The landscape is littered with failed printers who bought equipment without a good business plan and without existing customers lined up to pay expenses, so hopefully you have a business plan and paying customers in the pipeline.

    Check out https://quickbooks.intuit.com/r/office-and-equipment/pros-cons-leasing-vs-buying-equipment/ for a bascic overview of pluses/minuses. Good Luck!
     
    • Agree Agree x 1
  4. Glavin_ID

    Glavin_ID Member

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    I think a lot of people interchange the word “lease” and “finance” in the equipment world. Whatever you are looking for, Geneva is the place to go. Traditional banks without experience with printing equipment typically don’t give as good of terms because they don’t understand the true value and equipment life of industry specific equipment.
     
  5. Reveal1

    Reveal1 Active Member

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    Whatever you are looking for? So Geneva offers traditional financing (where I retain the equity in the equipment) and not just leases (where you pay the depreciation and build no equity)? Regardless how you frame it, if you are not paying cash than you are financing.
     
  6. Glavin_ID

    Glavin_ID Member

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    I have “leased” 3 pieces of equipment with them that had a $100 buyout at the end. You are right, if you aren’t paying cash you are financing. We have been in business for over 30 years, have a great credit and lease equipment all the time. Lots of advantages and disadvantages to both ways.
     
  7. Notarealsignguy

    Notarealsignguy Very Active Member

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    Banks don’t typically understand most businesses that they lend money to but are competitive. These equipment leases are just financing but typically are more expensive than traditional loans.
    The advantage to a lease is being off balance sheet so if you anticipate needing additional capital, the banks dont see it. Another thing they sell as an advantage is being able to write off the entire payment as an expense but technically you get the same with financing by depreciation and interest expense.
    The only way I would ever lease is if I was in a very equipment intensive business and needed access to a lot of capital on a regular basis. Otherwise, save the additional expense and use a bank.
    Leasing companies are willing to take more risk than a bank for new startups and shaky businesses
     
    • Agree Agree x 1
  8. James Burke

    James Burke Being a grandpa is more fun than working

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    I'm for outsourcing, saving / investing profits...and then paying cash when the clientele and schedule dictate when to buy the equipment.

    Or...buy an affordable piece of equipment you can pay cash for right now, and then upgrade as you go.


    JB
     
  9. Reveal1

    Reveal1 Active Member

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    Yep - no debt is a good place to be. Over the years went from 100% outsourcing, to leasing, to bank finance, to cash, and now increasingly more outsourcing as it's just too costly for a small operation to keep up with the various technologies in print. Self-source for service or quality control of our core customers. Our business model is primarily high quality/good profit design-intensive interior graphics, and wraps with all sorts of conventional print requirements thrown in to service our small business clientele in a small town. Acquiring equip w/ cash probably wouldn't be smart for the high volume PSP but works for us.
     
  10. Wide Image Solutions

    Wide Image Solutions Member

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    Hi we use 3 financing companies for our clients when they buy equipment from us. They are great people. CIT, Paramount, and Ascentium. thx Wideimagesolutionscom
     
  11. ikarasu

    ikarasu Very Active Member

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    Port Coquitlam, bc
    Not sure you know this, but I've seen Your posts in a dozen threads so figured I'd point it out.

    You're not allowed to advertise your business without a merchant account on here. It's very cheap and easy to do, and no reason not to. It takes little effort to setup - however not doing so is unfair to the merchant members who are paying.

    You'll also get more business by Being helpful rather than every post of yours being about getting new customers.
     
    • Agree Agree x 1
  12. Wide Image Solutions

    Wide Image Solutions Member

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    Jan 7, 2020
    Rockwall, TX
    sorry about that. I thought I was doing it correctly. ill ask my boss about this. thx
     
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