There are many payment options available when it comes to equipment financing. Knowing the options available is one thing, but knowing which one is the best choice takes industry knowledge, finance experience and an understanding of your specific business.

That’s where Connext comes in. Connext equipment Finance Experts work with you to understand your business needs, and then work on the equipment lease and associated payment structure. It’s by first realizing the business needs, that Connext is then able to discuss with you the various payment options for an equipment lease or equipment financing and make the appropriate choice. Frequently used and available payment options that Connext offers are as follows.

Payment Options

• First payment deferments – Allows the individual who is financing equipment to not pay, or defer, the first payment. This is helpful in a situation where cash is tight in the short term.
• Skip, Step, Seasonal. Monthly, Quarterly, Semi-Annual & Annual Payments – Allows payment structure to follow your business. Works well with seasonal businesses leasing equipment, or those with staggered or inconsistent revenue streams.
• Direct debit payments – Allows for automatic payments, lessening the administrative burden.
• Early Termination and Buy-out Options – Allows for flexibility down the road. Useful if cash needs are unknown in the future.
• FMV Purchase Options with and without Not-to-Exceed Caps – Allows for risk reduction for a business and allows the company to purchase the equipment.

To better understand which payment structure is right for your equipment lease or finance agreement, contact a Connext equipment Finance Expert.

At Connext, our equipment Finance Experts understand this dilemma and the associated business issue it creates. That’s why we’ve created 100% equipment financing. This option of equipment financing covers the entire equipment purchase including:

• Machine
• Installation
• Rigging
• Delivery

By allowing for the complete machine and all associated needs to be financed, you are able to keep your cash reserves and build an equipment financing structure that meets your individual cash flow needs. Zero money down when financing a machine is one thing. Zero money down when financing a machine along with rigging, installation and delivery – that’s something your business needs, which is why the Connext equipment Finance Experts have the option available.

If your business is in need of 100% equipment financing, or other financing options, contact our Finance Experts to build the best equipment financing solution for you.

It’s easy to find experts in any field, but it’s even harder to know if they are credible experts. That’s why we believe in the idea of “seeing is believing.” We don’t just say we offer amazing service; we promise it. Our customers experience it daily through our transparency with the equipment financing and lending process and quick customer response. We contact our customers as developments happen during the equipment financing process, not afterwards, which can be too late to save valuable customer relationships. We serve, lead, and advocate for our clients on a daily basis because we know that making our clients customers happy ultimately determines their satisfaction. The correct type of equipment financing is just one more step in the right direction.

The Connext Difference simply means

• leading our customers through the equipment leasing and loan process by educating them
• advocating for the best options to meet their needs
• serving them to make sure everything is going smoothly and above expectations

With over 50 years of experience in equipment financing, we make sure to build lasting relationships by ensuring the Connext Difference comes through in everything we do.

To learn about the specific steps of The Connext Clear® PROCESS and how they can benefit your business, contact us. We’ll be happy to answer your questions.

When looking to acquire equipment for business, knowing the advantages of leasing equipment over other options, such as obtaining a loan, is important to making the best decision for your business. Equipment leasing offers several clear benefits to some businesses and may do the same for you.

Capital and cash flow are crucial elements to any business; however some companies may not have much of either when preparing to obtain equipment. Through leasing, start-ups and businesses with limited capital and minimal cash flow have a way to secure needed equipment and remain flexible - usually with a flat monthly payment and little to no upfront costs. Another benefit to equipment leasing is that out of pocket costs are often eliminated or reduced with lease terms that offer general repairs and maintenance. The piece of mind this offers may also be an added benefit to business owners and managers that have a lot to think about. At the end of the equipment lease term, there may also be an option to upgrade the equipment, eliminating the concern for wear and tear and value depreciation. Also, monthly payments can often be deducted as a business expense, reducing the overall taxable amount of the business.

Equipment leasing undoubtedly has its advantages, but it wouldn’t be fair to not share its disadvantages over other options. In the end, leasing equipment with the wrong terms may cost more than purchasing does and unless there is an option to buy at the end of the equipment lease term, you don’t own the equipment. There are also, from time to time, some tax incentives that make purchasing equipment, instead of leasing equipment, very attractive.

It is important to understand the pros and cons of each option when preparing to acquire new business equipment. There are many things to consider, as each business is unique. Options should be weighed with your unique situation and, most importantly, with the company’s goals in mind.

Connext’s team of Finance Experts know the equipment leasing and financing world inside and out – and, with their background in many of the same businesses they serve, they understand the various business needs that influence these decisions.

To learn more how equipment leasing can benefit your business, or to get started, contact a Connext Finance Expert today.

As the 2011 tax year begins to wind down and 4^th quarter planning heats up, it is important to note how both the ‘Tax Relief Act of 2010’ and the ‘Jobs Act of 2010’ have benefited Section 179 in 2011 and, in turn, a company’s buying power. The benefit can be realized if you pay in full, or use equipment financing.

The positive impacts are seen in the increase of the Section 179 deduction limit, which has doubled to $500,000 and the total amount of equipment that can be purchased has increased to $2 million, up from $800,000. These increases are significant and can have a big impact on a business’s buying decisions and its bottom line.

Section 179 was created so that businesses will find it easier to invest in themselves and to grow. Business equipment is essential for most businesses to operate. Therefore all types of business equipment qualify for this deduction, from software to large machinery and almost everything in between.

Section 179 can also be applied to equipment leases and loans with the right structure. The deductions on equipment leases or loans may even be larger than the actual payments you make! With skip payment options, it’s even possible to install a machine now, and not start paying for it until 2012. This is just one benefit of equipment financing.

Do you operate in a “special zone”? Businesses that operate in certain areas of the country may qualify for an increased deduction. These areas are considered special zones where business activity is currently being encouraged. Some of these areas include: the Gulf Opportunity Zone, the New York Liberty Zone, and Special Enterprise and Renewal Community Business Areas.   

You will need to fill out IRS form 4562 in order to elect Section 179 deductions. But before you do, you should also be aware of how it can work with Bonus Depreciation to maximize your savings.

Bonus Depreciation was also positively affected by the acts of 2010 mentioned above, increasing to 100% on qualified assets – after a $500k deduction limit is reached. However, with Bonus Depreciation, only new equipment qualifies. In this case, you may take both Section 179 and Bonus Depreciation deductions. Section 179 can be applied to both new and used equipment. This works on equipment financed, equipment leased or even equipment paid for in cash.

Your potential savings can be calculated quickly and easily by visiting the Section 179 calculator at ConnextFinancial.com

Connext is a leader in commercial equipment financing and our team understands the implications of Section 179 and other tax incentives. We work with businesses to help them understand all their options and make better business decisions. The deduction and benefits are ending soon. Contact a Connext Finance Expert to get your tax savings before the relief act ends.

Connext specializes in specific industries for a reason. One industry they specialize in is the manufacturing and machine tool industry. A banker or loan officer can offer an equipment lease, but truly understanding the value of your machine, which term is right for you, and options that match your business needs takes a true equipment lease expert with years of manufacturing and machine tool industry knowledge.

Sure, there are two parts to machine leasing. If you’re looking to lease a machine, then this is something you should ensure your equipment lease partner has. First, your machine lease provider needs to have a thorough understanding of the equipment leasing and loan market, so they fully understand the array of lease and loan options available. For example, if a provider offers an equipment lease structured as an operating lease with a fair market value purchase, but you need the tax benefits a capital lease allows for, they may still push you into the operating lease since it’s the only option they have available. Simply put, they do what’s best for them, not for you. At Connext, we make it a fundamental business practice to bring our clients a wide array of machine lease options that fits their individual and business needs.

The second thing to look for in a machine lease partner is industry experience. As specialists in the manufacturing and machine tool industry, this knowledge allows us to speak the industry language and help move along the equipment lease process. Additionally, we know the value and useful life of manufacturing equipment to help calculate residual values, which in turn allows for the best lease options to be built. Unlike traditional bankers, we work with funding sources specific to manufacturing and machine tools. What this means for you, the client, is the funding source understands your equipment and approves your equipment lease so we can get to yes fast.

Industry experts for manufacturing and machine tools, equipment lease options that surpass most funding sources, and Industry Finance Experts willing to work with you to build an equipment lease that fits your needs. If this is something you need, then simply contact a Finance Expert today.

The decision to finance with a loan or lease equipment more often than not comes down to preference for one over the other. To help make the decision easier, here are a few simple facts to help you out next time you need to decide between the two.

Let’s begin with the most obvious difference, where the debt resides. With an equipment lease, you get the newest equipment, without carrying the debt. The monthly payment is expensed. You tend to get the newest equipment every few years without having to go through the hassle of selling your old equipment. This option can be extremely appealing especially when your business needs to stay current with technological advancements in the industry. Equipment leases are also appealing because they usually have lower monthly payments, which may allow you to get more equipment options than you may be able to otherwise afford initially. Unfortunately, at the end of the equipment lease, you’re left without a tangible asset unless you decide to buy the equipment through a purchase option. 

Financing equipment with a loan has its pros and cons too; however, the pros for a loan tend to be long-term versus short-term. For instance, the initial cost of equipment financing through a loan may be higher than leasing equipment, but at the end of the term you own the equipment. You’ll be left with equity in the equipment for which you can repurpose anyway you want. This allows for exit strategy options, giving you the ability to keep the machine, sell the machine and upgrade, sell to liquidate cash, or sell and begin an equipment lease.

Either way, it all comes down to your individual business needs, and the project which the equipment will run. The difference between an equipment loan and equipment leasing doesn’t necessarily mean one option is better than the other. There is a time to lease, and there is a time to buy. That is what Connext is about, discerning which is best. If you have any further questions about the differences between an equipment loan and leasing, contact one of our Connext Finance Experts. They’ll be sure to point you in the right direction.

Would you buy your house from a car salesman? Would you take your pet dog to a pediatrician? Of course not. People specialize in industries and gain experience for a reason, to be the best and serve their customers better than anyone else can. Why should equipment finance and leasing be any different? For the food processing, packaging and flexographic industry, it doesn’t have to be.

At Connext, that idea flourishes throughout. That’s why at Connext, they specialize in specific industries and have years of experience working with customers. One specific industry for which Connext provides machine financing and leasing is the food processing, packaging and flexographic industry. Indeed a large and established industry, Connext has Finance Experts dedicated to this industry.

With multiple years of industry experience and practical use of machine leasing, the Finance Experts grow to understand their customers needs, their ambitions and business desires. When the company or individual needs to purchase equipment, Connext is there to provide machine financing. Connext understands the industry lingo, understands the industry market and equipment values. What this means for the customer is they get someone who is on their side and able to communicate at a deeper level quickly, as well as more accurate equipment valuations. This allows for higher residuals, and greater chance of machine financing approval.

We are serious about machine finance and leasing in the food processing, packaging and flexographic industry. If you wish to discuss an equipment finance need, or to comment, please contact Linda Reed. 

You’re looking to buy a piece of equipment, but now have to figure out the best way to pay for it. Sure, there is enough cash in the bank to pay for it all. But is that poor cash management? What about using the existing line of credit – it’s easy and already there. But will you get it paid back in a timely manner? Will you have enough room on your line for other needs, and does the bank truly understand the value of what’s being purchased?

These are some tough questions that go through many equipment buyers’ minds, but are they the only equipment purchasing options? No. There are other options available, options that can save you money and get the equipment on the production floor faster. At the same time, keeping equipment finance bank lines of credit open for other needs.

The additional options available are a Capital Lease option, a Fair Market Value and Operating Lease option, along with Equipment Finance options. These options are available through Connext, an equipment finance and leasing company with decades of industry specific experience.

To put it plainly, the additional equipment lease options means there is flexibility in regards to payment structure, terms, tax structure and cash flow needs. Additional equipment finance options afford greater chance of approval. The deep industry knowledge of Connext Finance Experts translates to a more competitive interest rate, since they best know the true value of the piece of equipment purchased.

To learn more about equipment financing and leasing options available through Connext, or to speak to an industry Finance Expert, contact Connext.

Wondering if financing your equipment is the right move? You are not alone. Connext has helped many companies, both private and public, finance equipment in various industries. Many times, the same initial question is asked: “Should I finance my equipment?” The answer is not always immediately apparent, as there are multiple other business needs to juggle to make the correct decision. That’s where the beauty in Connext and their industry experienced Finance Experts can help you make a sound decision. To help get you started on some key benefits of financing or leasing your equipment, the benefits are broken down into Cash Flow and Business categories.

Cash Flow Benefits: Cash is the life blood of any business. Properly managing this crucial element is critical in order to maintain growth, sustainability and longevity in any business. Determining to finance equipment or not, will have a big impact here. Cash flow benefits from financing equipment include the following.

• Low fixed monthly payments improve cash forecasting
• Bank lines are preserved
• Minimal fees and low/no money down
• Wide range of products allow monthly payments to match your business needs
• Bundled financing allows for soft costs (freight, installation, etc.) to be rolled into payment
• Competitive rates

• An additional credit reference and source is established
• Internal approval for financing may be obtained faster and easier
• Purchasing process is made easier
• Lien is only placed on equipment being financed

To learn more how financing equipment can benefit your business, or to get started, contact a Connext Finance Expert today.