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Thread: Equipment leasing

  1. #1

    Equipment leasing

    Anybody used a leasing company to acquire their laser? Just curious about the experience of others.

    Thanks
    Epilog Helix 24 - 50w
    Kern HSE 50x100 - 400w (rated at 479w!)

  2. Are there companies that will Lease? I am interested as well. Do you know any companies that do?

  3. #3
    Join Date
    May 2013
    Location
    Twin Cities, Minnesota
    Posts
    243
    I researched equipment leasing extensively. If you've got an established business with a profitable track record and a high level of income you can usually get reasonable rates. They aren't as low as you'd get on a small business loan, but they aren't horrible either. If you're a new business steer clear. The rates are so high you're better off putting a new machine on a credit card. The LOWEST rate I was quoted for a new business was 12%. The highest? A generous 18%.

  4. #4
    Talking strictly financially, leasing is the worst way to go. Call up your credit card company and talk about loan options. They often have pretty reasonable short term loan options, often with 12 months interest free.
    Equipment: IS400, IS6000, VLS 6.60, LS100, HP4550, Ricoh GX e3300n, Hotronix STX20
    Software: Adobe Suite & Gravostyle 5
    Business: Trophy, Awards and Engraving

  5. #5
    Join Date
    Mar 2014
    Location
    Iowa USA
    Posts
    4,441
    Every so often from Capital One my credit card company runs a no interest 12 month 1% origination fee promotion. Just use one of the enclosed checks. They are great, IF you can pay it off in the 12 or 18 month period and I do. If not interest kicks in and its no longer cheap!
    Retired Guy- Central Iowa.HVAC/R , Cloudray Galvo Fiber , -Windows 10

  6. #6
    Join Date
    Nov 2011
    Location
    Los Angeles
    Posts
    178
    I prefer a loan. If you are an established company with a good credit history you should be able to get a loan in the 5-6% range.

    With a lease, you need to make every payment.

    With a loan, you have the option of making extra payments each month and paying the loan off early. If you should have an extra good month, kick in an extra $100 against your payment. It makes your credit score better and you pay your machine off sooner.

    You can do as Bill mentioned above and use credit card promotions, just be sure to pay before the interest rate kicks in.

    My book keeper is constantly looking at the mail for credit card promotions.

    Best of luck.

    Robert
    Robert Tepper
    Trotec Rayjet 300/80 Watt
    Dahlgren 500 Engraving Machine, CNC Engraving Machine
    Pad printer with 5 3/4 x 5 3/4" print area
    Jackson Vulcanizers, 15 x 24", three total
    Hegner Scroll Saws, 14", three total

  7. #7
    Depending on the accounting rules in your area you may be able to expense 100% of the cost of a lease but only the interest portion of a loan. Talk to your accountant / tax advisor.
    Guy Hilliard

    Sawdust and Noise

    Trotec Speedy 400 w 80W, rotary attachment, vacuum table, cutting table, lamella bars

    AXYZ 4008 w 7 position ATC, Servos, Vacuum, pins, laser digitizer

    CorelDRAW X6,
    Rhino 5,
    Aspire

  8. #8
    Join Date
    Oct 2007
    Location
    Cincinnati, Ohio
    Posts
    1,843
    I pay cash for everything. No debt makes profitability higher and eliminates pressure to make the lease/loan payments. Now I CAN make money, but I don't HAVE to make money.

    However, if I had a good contract (in hand) that would cover 100% of the cost plus a healthy profit.... I would consider my options.
    Tim
    There are Big Brain people & Small Brain people. I'm one of the Big Brains - with a lot of empty space.- me
    50W Fiber - Raycus/MaxPhotonics - It's a metal eating beast!
    Epilog Fusion M2 50/30 Co2/Fiber - 2015
    Epilog Mini 24 – 35watt - 2006 (Original Tube)
    Ricoh SG3110DN
    - Liberty Laser LLC

  9. #9
    Equipment purchases of $25,000 or less qualify for rule 179 of the 2014 tax code in the US and if acquired before April 15, of 2014 will qualify under the more generous 2013 rule 179 which covers purchases up to $500,000. So cash could also be a good option.
    Mike Null

    St. Louis Laser, Inc.

    Trotec Speedy 300, 80 watt
    Gravograph IS400
    Woodworking shop CLTT and Laser Sublimation
    Dye Sublimation
    CorelDraw X5, X7

  10. #10
    Be careful company's like Timepayment charge interest even if you payoff earlier, and also have an end of fee payment to keep the laser. Better off going to your local loan shark
    Charity


    25w versa laser
    corel x5

  11. #11
    Decided not to go with a lease. They were way too expensive.

    Scaled back my purchase and instead of getting the trotec 400 for now, just put a deposit down on a much more sensible, used helix 24 50w. I figure I can use this for a bit, outsource the larger format stuff, then get the larger laser when we have a bit more time in business.
    Epilog Helix 24 - 50w
    Kern HSE 50x100 - 400w (rated at 479w!)

  12. #12
    Some manufacturers will offer that option, check with company you plan on purchasing from.

    Many laser today are cheaper than buying a car or a boat.... It didn't used to be that way...
    Martin Boekers

    1 - Epilog Radius 25watt laser 1998
    1 - Epilog Legend EXT36 75watt laser 2005
    1 - Epilog Legend EXT36 75watt laser 2007
    1 - Epilog Fusion M2 32 120watt laser with camera 2015
    2 - Geo Knight K20S 16x20 Heat Press
    Geo Knight K Mug Press,
    Ricoh GX-7000 Dye Sub Printer
    Zerox Phaser 6360 Laser Printer
    numerous other tools and implements
    of distruction/distraction!

  13. #13

    Credit Card specials....

    Quote Originally Posted by Bill George View Post
    Every so often from Capital One my credit card company runs a no interest 12 month 1% origination fee promotion. Just use one of the enclosed checks. They are great, IF you can pay it off in the 12 or 18 month period and I do. If not interest kicks in and its no longer cheap!
    Watch out for those "Deals"... I got burned when I paid for a tube upgrade on one through Chase Ink.. Terms were 0% with 1.5% transaction fee. Not bad... Figured I could pay it off in a year and save finance charges. Well buried in the fine print is that when you make a payment, all funds go toward paying off that loan. So if you make any other charges on the card they end up being carried month to month at their full finance fee.... Once I figured this out, I paid it off in full and said never again. What a racket!

    So unless you have a card you don't use, and can only let your "loan" amount stay on the card, stay away from their advertised deals
    Bruce Clumpner
    Brandon Services Laser Engraving
    Academy Commemoratives - Personalized Memorabilia for the U.S. Service Academies
    Irvine, CA
    -
    Epilog 75-watt Helix, 40-watt 18-Mini
    Started with Corel Draw V1 now feeling the pain of CorelDraw x7
    CS4 photoshop
    CS4 illustrator
    PhotoGrav

  14. #14
    I've looked at a couple leasing contracts and if you're a new business w/ no credit history it might be one of your only options.
    Problem I had with equipment leases was most charged me the entire terms interest even if I paid it off early. The better your
    credit the better your terms for sure. Just shop around.

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