Leasing Versus Buying

What Are The Advantages of Leasing Versus Buying Equipment ... Because Leasing Offers Many Considerations as Well as Tax Benefits.

Four out of five companies have used leasing to acquire equipment, according to the Equipment Leasing Association.......But what exactly is equipment leasing?

It's a simple agreement between the seller of the equipment (the vendor) the leasing company (the lessor) and the end user (the lessee) covering the use of the equipment, for a fee.

The function of the leasing company is to purchase the equipment from the vendor, then lease it for a specified time and under specified terms to the lessee.

One of the most straightforward advantages of leasing is that conventional business wisdom deems it prudent to buy assets that will appreciate in value, such as real estate, and lease assets that will depreciate in value, such as machinery and equipment. For what other reasons do companies lease rather than purchase equipment?

Conservation of Working Capital: Bruton Capital Leases allow the maximum conservation of working capital to:

*   Maintain cash for operating expenses

*   Acquire equipment not foreseen or forecasted in your budget

*   Conserve  borrowing capacity for other business requirements

Finance 100% of the Costs:  Leasing offers 100% financing of the entire equipment package, including "soft costs" such as training, installation, software, supplies and shipping. (Some restrictions apply)

Equipment Pays for Itself By using a Lease, your equipment has the ability to pay the monthly lease payment from the income it generates in monthly earnings or cost savings.

Conserve Bank Credit Lines: Leases avoid the use of your cash or short-term bank lines, thus conserving operating funds and borrowing capacity. Leasing preserves working capital, net worth and other resources that is commonly required for most other types of intermediate and long term financing.

Fixed Payments: There is no need to worry about rising interest rates. The monthly lease payment does not change. This makes planning and financial budgeting easier.

Flexible Leasing Options:  leases' are flexible as to the amount financed and allows you to create your own payment structure to meet the needs of your business. Longer terms mean lower payment. You can match your payment with your cash flow.

Collateral Requirements: collateral requirement is the equipment being financed.

New Technology Advantage: Leasing can help keep your equipment up to date. It allows you to acquire the latest technology to remain efficient and profitable.

Establish Credit History: New businesses or companies with inconsistent history can establish a credit history allowing them to lease / purchase more equipment as their business grows. Leasing provides a new source of funds

Tax Advantages: - 10% Purchase Option: Potential tax advantages also exist. Lease payments may be fully deductible as an operating expense. In general the payment on a "true lease" (fair market value or 10% buyout option) may be recognized by the IRS as an operating expense for tax purposes. This type of lease could possibly reduce your tax liability. It is usually treated as a fully-deductible operating expense.

Tax Advantages - Section 179 - "EFA" Equipment Finance Agreement or $1.00 Purchase Option Section 179 is a special tax deduction allowing you to recover all or part of your equipment cost in the year it's put into service.

Equipment must be for business use. This is a method to quickly write-off the equipment instead of depreciating the equipment over the life of the equipment. In 2013, companies are allowed to write-off as much as $500,000 of equipment acquired over the course of the year.

Be sure to consult with your accountant to determine which option provides the best tax benefit for your company.

Why Lease, when I can go to the Bank? Most companies that lease maintain their bank lines for other needs other than capital investments. Banks often require a down payment.

Banks have stricter documentation and fiduciary guidelines, so that the process can be slower and the additional charges are usually higher. 

Other disadvantages often include the requirement of additional security or collateral (both business and personal), variable interest rates and an unwillingness to finance soft costs such as installation, software, training and shipping.

Convenience And Quick Approval: There are no loan committees or lengthy investigations. Most applications can be processed in 12 to 24 hours after requested information has been submitted.

Our certified experts are here to answer any questions and offer you a FREE, no obligation evaluation of your equipment needs. 

Pick up the phone and call us today.

Bob Bruton

888-658-6669

Why Use Leasing Companies Instead Of Your Banks

Why Use Leasing Companies Instead Of Your Banks

Just had a customer three months ago decide to go to their bank to get a loan on equipment because the rate was 4.75% and ours was 8.95%. I went over all the benefits of leasing but they were stuck on rate. (As customers with good credit are)

Just today he called me and wanted to know if I could refinance his equipment because the bank is reporting the equipment on his personal credit and dropped his score from 746 to 671 because of his debt to income ratio.

Also the equipment is on his balance sheet making it hard for him to get approved on more equipment needed. This is a good example for a business owner who was trained his whole life lower rates are better, but when it comes to equipment for your business even though a lease may cost you slightly more at the end of term the benefits are much greater than a bank loan in most cases.

Be sure to consult with your tax advisor prior to making any equipment  acquisitions, as they will guide you as to which best fits your needs.

For a Free Consultation contact
Robert Bruton
361-739-1507

Big Rig Truck Financing & Leasing

Truck Financing and Leasing

If your business is trucking we can help you build your fleet. We offer financing options to help you grow you’re trucking business.

Leasing offers your business a broad range of commercial truck financing options. We are excited to offer financing commercial work trucks, light duty and medium duty trucks for large and small business owners.

We believe that commercial work programs are essential to the success of a commercial business owner's ability to deliver their product to customers. We offer several financing options and services to offer too small to medium sized trucking companies.

"A" Credit: Trucking companies with good business credit history and owner operators with personal credit scores above 700, three or more years of experience, and a solid payment history for their previously financed trucks and trailers, will obviously enjoy the most favorable market rates.

"B" Credit: (Credit scores between 650 and 700) Offers many of the same benefits as our "A" credit

Our second chance program can help Fleet Owners and Owner-Operators that have personal credit scores as low as the mid-600s, if they have resolved most of their current credit problems and provided they have started re-establishing credit as a result of making regular on-time payments to their current creditors.

Whether you are acquiring additional equipment or just want to refinance the trucks & trailers you already have financed, we can help.

We can also turn any existing equipment that is already paid for into a source of working capital by offering you a Sale-Leaseback. TRAC (Terminal Rental Adjustment Clause) Leases can help fleet owners better manage their cash flow by providing lower lease payments and the possibility of a cash rebate at the end of the lease.

At the beginning of a TRAC Lease a residual amount is chosen, say 20%. The lease payments are then only based on the 80% of the equipment that is financed, thereby lowering the monthly payments. At the end of the lease you will have three options:

Purchase the vehicle for the Residual Amount.

Extend the lease by financing the Residual Amount.

Turn in the vehicle and be eligible for a "Rental Adjustment" based on the sales proceeds of the vehicle.

Whether you need two trucks or two hundred,  Equipment Leasing has the finance options to assist you with acquiring the equipment you need to operate your business.

I will be happy to discuss your needs and see how we can help you get he trucks you need. Help is a phone call away! 

Contact:

Bob Bruton
888-658-6669

Factoring Receivables

Factoring, 101 The Secret To Cash Flow

Cash flow is a problem for most businesses. In fact, it's the reason why most businesses fail. Receivables just don't come in fast enough to meet cash flow needs.

Factoring is simple, cost effective solution for your cash flow needs. Remember, factoring is not a loan. it is the purchase of Accounts Receivable at a discount. Companies factor their invoices for a multitude of reasons.

The "Growth" Factor - The Company has growth opportunities and needs cash for working capital (the growth in Accounts Receivable).

The "Time" Factor - The Company is in a transitional period financially and needs working capital to buy time for turnaround measures to be implemented and/or take effect.

FACTORING BENEFITS

Factoring enables businesses to maximize their cash flow by receiving funds early for their receivables. The process is simple. We PURCHASE (not a loan) invoices from the client, enabling them to get the majority of their money, tied up in accounts receivable, immediately (generally 80% advance or higher).

Bruton Capital client managers go to work to ensure these invoices are collected in a timely manner. The reserve (20%) less fees go to the client, invoice-by-invoice, on a weekly basis. Easy and Simple.

In essence, the client out sources it's credit and collection department. In doing so, they not only get their money more quickly but they realize many other benefits as well:

1. Credit Investigation: Provides a safety net minimizing risk of doing business with slow-pay or no-pay customers. Through risk management losses are minimized
2. Invoice Ledgering & Accounting: We provide our client with full accounting of all activities done on their behalf with a simple ledger that can be downloaded from our client web site directly into their booking software, thus reducing accounting cost.
3. Immediate Funding: Typically 80% of invoice value in as little as 24 hours.
4. Follow-up & Collections: We follow up on invoices to for timely payments, which reduce personnel and factoring.
5. Aging & Other Reporting: 24/7 State of the art reporting on our customized client web site. You can go in for invoice factoring whenever you need instant cash for meeting expenditure.

One bit of information that you must know beforehand is that in invoice factoring, your recoverable amounts themselves are the collateral, and you need no further securities.

We're an ideal silent partner that provides the capital, so you can run your business your way. If you ask for advice, we're ready to share our diverse knowledge and experience.

Our success comes through years of financial experience, but we leverage our corporate experience dealing with day-to-day business capital issues to ensure your factoring success.

We serve a variety of industries and companies of all shapes and sizes, but the bottom line is that all of the companies we serve have two things in common:

1. They believe that their people are driving their success.
2. A successful corporate culture is in the eye of the beholder. If it works for the company, the employees, shareholders, and customers - it works.

Contact Robert Bruton
888-658-6669

Working Capital Loans

Simple Application We make it simple, so you can get back to running your business.

Focus on Cash Flow Because there's more to your business than a credit score.

Fast Decisions Decisions in as fast as 1 business day, funding in as fast as 2 business days.

About Our Loans $5,000 - $500,000 3-18 Month Terms For businesses open at least 1 year with annual revenues of at least $150,000

Lending Technology & Solutions
Learn how Banks, Other Lenders, and Small Business Service Providers can leverage the companies Platform to deliver working capital loans with an exceptional customer experience.

FEATURE Loan Size $5,000 - $500,000

Terms 3 - 18 Months Payment Daily payments from account via ACH (Automated Clearing House)

Security Personal Guarantee

Timing Decisions in as fast as 1 business day, funding in as fast as 2 business days

TopIndustries

• Restaurants
• Automotive Repair
• Dentists
• Doctors
• Spas
• Drinking Establishments
• Plumbing
• Supermarkets
• Landscaping Services
• General Retail

Contact Robert Bruton
888-658-6669

Ted Talks "Bestseller"

Ted Talks, is the coolest way to learn so much about anything really. From business to our ecosystems. Ted Talks are truly amazing! We love this book.--Robert Bruton

Since taking over TED in the early 2000s, Chris Anderson has shown how carefully crafted short talks can be the key to unlocking empathy, stirring excitement, spreading knowledge, and promoting a shared dream. Done right, a talk can electrify a room and transform an audience’s worldview. Done right, a talk is more powerful than anything in written form.

        This book explains how the miracle of powerful public speaking is achieved, and equips you to give it your best shot. There is no set formula; no two talks should be the same. The goal is for you to give the talk that only you can give. But don’t be intimidated. You may find it more natural than you think.
        Chris Anderson has worked behind the scenes with all the TED speakers who have inspired us the most, and here he shares insights from such favorites as Sir Ken Robinson, Amy Cuddy, Bill Gates, Elizabeth Gilbert, Salman Khan, Dan Gilbert, Mary Roach, Matt Ridley, and dozens more — everything from how to craft your talk’s content to how you can be most effective on stage. This is the 21st-century’s new manual for truly effective communication and it is a must-read for anyone who is ready to create impact with their ideas.

Shoe Dog "Bestseller"

We love the new book, this memoir gives you real insight into Nike and the man himself Phil Knight!--Robert Bruton 

In this candid and riveting memoir, for the first time ever, Nike founder and board chairman Phil Knight shares the inside story of the company’s early days as an intrepid start-up and its evolution into one of the world’s most iconic, game-changing, and profitable brands.

Young, searching, fresh out of business school, Phil Knight borrowed fifty dollars from his father and launched a company with one simple mission: import high-quality, low-cost running shoes from Japan. Selling the shoes from the trunk of his Plymouth Valiant, Knight grossed eight thousand dollars that first year, 1963. Today, Nike’s annual sales top $30 billion. In this age of start-ups, Knight’s Nike is the gold standard, and its swoosh is more than a logo. A symbol of grace and greatness, it’s one of the few icons instantly recognized in every corner of the world.

But Knight, the man behind the swoosh, has always been a mystery. Now, in a memoir that’s surprising, humble, unfiltered, funny, and beautifully crafted, he tells his story at last. It all begins with a classic crossroads moment. Twenty-four years old, backpacking through Asia and Europe and Africa, wrestling with life’s Great Questions, Knight decides the unconventional path is the only one for him. Rather than work for a big corporation, he will create something all his own, something new, dynamic, different. Knight details the many terrifying risks he encountered along the way, the crushing setbacks, the ruthless competitors, the countless doubters and haters and hostile bankers—as well as his many thrilling triumphs and narrow escapes. Above all, he recalls the foundational relationships that formed the heart and soul of Nike, with his former track coach, the irascible and charismatic Bill Bowerman, and with his first employees, a ragtag group of misfits and savants who quickly became a band of swoosh-crazed brothers.

Together, harnessing the electrifying power of a bold vision and a shared belief in the redemptive, transformative power of sports, they created a brand, and a culture, that changed everything.