Financing ESS Technologies, Inc. Packaging Machinery
ESS Technologies, Inc. has partnered with
Capital, Inc. to offer financing solutions for purchasing new
packaging machinery. Three leasing options and a choice of lease
terms allow for a payment to fit any budget.
Financing Can Benefit Your Business
- Use vs. Ownership: The value of equipment is in its use, not
its ownership. Financing enables you to pay for the equipment
with future profit instead of working capital.
- Affordability: Financing results in low monthly payments
over 1-5 years, and the equipment can be purchased for a nominal
cost at the end of the lease term.
- Fixed Payments: Fixed payments avoid the uncertainty of
variable (floating) interest rates typical of bank financing.
- Cash Conservation: Monthly payments leave cash available for
operational expenses or seasonal cash flow needs.
- Preserve Credit Lines: Borrowing from the bank shrinks
available credit lines. Financing maintains credit lines for
Operating Lease (Fair Market Value Purchase
Option): At the end of the lease term, the lessee has the option
to purchase the equipment for its Fair Market Value.
- Lease payments are charged to Operating Budget - which avoids Capital Budget constraints.
- Lease payments are generally lower than all other financing options - and are 100% deductible against taxable income.
- Leasing can greatly reduce the Cost Recovery Period for equipment.
- Operating Leases are Off-Balance Sheet transactions and improve most financial ratios, including ROA, ROI, and Debt/Net Worth measurements.
- Operating Lease payments are not an Alternative Minimum Tax item.
10% and $1.00 Purchase Option Leases: At the end of the lease term,
the lessee has the option to purchase the equipment for 10% of the
original equipment cost (10% Option) or for $1.00 ($1 Option). Both
- Fixed purchase options.
- Generally treated as a booked asset and liability on financial statements.
- Preserves bank lines of credit for operations, real estate, or other capital expenditures.
Contact ESS to request lease payment information for your application.