Financing

Arnold Machine is committed to assisting you with your equipment financing, if needed.

Arnold Machine is excited to present flexible leasing options for our high-quality standard equipment. These plans are designed to provide you with the opportunity to access cutting-edge machinery while optimizing your cash flow and minimizing upfront costs. Whether you need equipment for a short-term project or a longer-term solution, our leasing options allow you to tailor your choices to fit your specific business needs. Explore the benefits of leasing with us and experience the exceptional performance and reliability of our equipment.

What is a Commercial Equipment Lease?

A commercial equipment lease is a contractual agreement where a business (lessee) rents equipment from an owner or finance company (lessor) for a fixed period, typically with regular monthly payments. A capital lease, specifically, is structured like a loan and allows the lessee to eventually own the equipment—often for a nominal buyout amount like $1.

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Types of Commercial Equipment Leases: 

Operating Lease:

  • Short-term.
  • The lessee uses the equipment but doesn’t own it.
  • Often used for technology or equipment that quickly depreciates.
  • May be treated as a rental expense on financial statements.

Capital Lease (Finance Lease):

  • Long-term and non-cancelable.
  • Treated as a purchase for accounting purposes.
  • Lessee may own the equipment at the end of the lease term or have a bargain purchase option.

$1 Buyout Lease:

  • A finance lease where the lessee can purchase the equipment for $1 at the end of the term.
  • Often used when the lessee intends to own the equipment.

Fair Market Value (FMV) Lease:

  • Offers lower monthly payments.
  • At the end, lessee can return the equipment, renew the lease, or buy it at its fair market value.

Key Benefits of Leasing: 

  • Reduced Upfront Costs: Leasing often eliminates or significantly reduces the initial investment required to acquire equipment. 
  • Predictable Budgeting: Lease payments are typically fixed, making it easier to plan and manage cash flow. 
  • Access to the Latest Technology: Leasing allows businesses to access and utilize the latest equipment without the need for large upfront expenditures. 
  • Tax Advantage: Lease payments may be deductible as a business expense, potentially reducing tax liabilities. 
  • Flexibility: Lease terms often include options for renewal, upgrades, or early termination, catering to changing business needs. 
  • Preserves Capital: Leasing allows businesses to keep their capital for other essential operations and growth initiatives. 

Let's work together to find a financial solution for your manufacturing equipment needs. Contact us today, we can help.