“From the beginning, NFS Leasing has been an invaluable asset in helping us serve our customers. Their team of experienced executives has enabled our channel oriented business model, and they are an outstanding partner, offering flexible and creative solutions to our financing needs. It has been a pleasure working with NFS and we look forward to their assistance in providing our future finance needs.”
Varian Medical Systems
Architectural Glass Manufacturing
Synthetic Ice Hockey System
World class hockey trainer needed state of the art equipment
Peterbilt Trucks and Mixers
Gunite pool start-up finances essential equipment
2018 International LT/Challenge:
Presses and Extruders
Custom finance structure for plastics manufacturer
Cloud provider needed
equipment to scale
Pump Fillers & Power Conveyor
New contract required equipment to meet demand
GE, Medical & Imaging Equipment
Highly specialized assets with complex organization approval process
Provide competitive rates despite negative EBITDA & bank covenants
NFS Leasing has completed many fast equipment financing transactions recently. Check them out here.
A FMV lease is an Equipment lease where the lessee has the option to either extend the lease, buy the asset at the end of the lease term at the then fair market value, or return the asset to the leasing company.
FMV Leases have lower up-front costs, lower monthly payments and multiple tax advantages. Technically, the lessee does not own the equipment. In an FMV Lease, the lessee can finance up to 100% of the cost of the equipment including “soft costs” (transportation, delivery, installation and other deferred costs).
The payment is usually lower than a Capital Lease (which preserves cash flow) and also allows the business to deduct qualifying lease payments as operating expenses. An NFS FMV Lease includes Skip Payment Leases and Step Payment Leases. These leases can be tailored with flexible structures, tax advantages and end-of-term buyout options including lease extensions, return or purchase of equipment at fair market value.
Finance / $ Buy Out Leases are similar to traditional loan purchases as it effectively captures the ownership of the asset with exclusive right to use and purchase options but also offers 100% financing; conserving cash up front for other projects with higher ROI potential. Technically, the lessee owns the equipment. If long-term equipment ownership is your goal, then a Finance / $ Buy Out Lease is an excellent choice.
Payments are fixed and as equipment owner, you can depreciate the equipment and even take advantage of Section 179 incentives and Bonus Depreciation. NFS Finance / $ Buy Out Leases are a good option for financing equipment with a long useful life (such as yellow iron, manufacturing machinery, warehousing and racking, etc.) as the equipment may be depreciated on your balance sheet and you may be able to deduct the interest expenses from your taxes. See your tax consultant for details.
A sale leaseback is when NFS purchases equipment that a company owns and then leases it directly back to the company.
With an NFS Sale and Leaseback, you can monetize the equity in the owned assets up to 80% of the fair market value of the owned assets. This is useful when a company needs to use the cash invested in an asset for other investments (where a higher rate of return can be generated), but the asset is still needed in order to operate their business. This provides the company immediate cash and then at the end of the term, the company may own the equipment outright again.
A sale leaseback can provide the opportunity to reinvest the newly acquired capital towards expansion, company expenses, purchasing inventory or many other business needs. Reimbursements can be structured as a lease or a loan depending on your unique business needs. Regardless of architecture, rest assured that your transaction will be funded quickly with flexible terms and a custom solution from NFS Leasing.
Simply put, Working Capital is the amount of funds a company needs for meeting day-to-day operations of a concern. Most major new projects, such as an expansion in production or entering into new markets, require a working capital investment. That reduces cash flow and can in turn jeopardize meeting the day-to-day business operations. Working Capital Financing can provide the solution.
NFS Working Capital Financing is secured only by the specific asset being financed, not all the present or future assets. Within these structures, the borrower is the title holder and NFS Leasing is a lienholder on the financed equipment. Advantages can include fixed rates for the full term; not tied to market rates that may rise over the term of the loan.
Working Capital Financing also have no covenants that, unlike most bank loans, allow you to borrow future funds when needed. Businesses who prefer retaining ownership during the life cycle of the transaction favor Working Capital Financing. These also offer tax advantages as the equipment may be depreciated on the business’s balance sheet and the business may be able to deduct the interest expense as well.