eLease Equipment Leasing

Used equipment is an excellent way to take advantage of leasing or financing. We recently financed a used 2000 Peterbilt truck for a customer that is a great example of how to make the most out of limited capital.

To begin with, the used truck cost 40% less than a new truck. That is a big savings, even before they calculated how much less they would have to pay upfront by breaking up the payments over a couple of years. We were also able to finance the additional 200,000-mile warranty for the truck. This gave the customer the piece of mind that if anything went wrong with the truck it would be covered in their monthly payment.

There are a couple of things to remember when choosing a piece of used equipment. First make sure the equipment is in good working condition. A lot of companies will lease a piece of used equipment that is exactly like equipment they already own. Smart move.  That way they already know how to operate the equipment and will have a maintenance plan in place to keep the equipment in good working order.

When ever possible get a warrantee. If a warrantee is not offered, which is usually the case with used equipment, take the time to get the equipment looked at by a trained professional to make sure there are no hidden problems an untrained couldn’t see. Particularly when you are leasing the equipment, it is worth the minimal extra cost to ensure you have a good piece of equipment that will last the term of the lease.

eLease is able to finance all kinds of used equipment and recently we expanded our offerings to allow used equipment to be leased regardless of the age of the equipment.  eLease most frequently leases titled vehicles, furniture and fixtures, printing equipment, metal working equipment and others.

In my opinion, there are only two seasons in the snow industry: ski season and preparing for ski season. In the off-season critical decisions are made regarding investments in equipment and capital improvements that are needed to maximize the experience of guests, stay competitive in the marketplace, and upgrade to newer technology. Of course these decisions need to be implemented before the mountain is in its high revenue cycle and cash flow positive.

Ski business or not, the goal of any company is always to maximize cash flow and to match the timing of lease payments with the income being generated by your business and its new equipment. Seasonal trends are common in several sectors including consumer electronics, hotels, restaurants and department stores.

eLease has developed a Snow Resort Financing Program that provides the convenience of seasonal payments, which are ONLY due during when the mountain’s busy season. By matching the payment with the revenue cycle we can maximize your cash flow during the off-season and avoid negative cash flow on equipment. Additionally, seasonal payments give you the advantage of getting a jump on the season. You’ll have your new equipment delivered, installed, and tested months before your first payment is due.

The benefits of leasing equipment become crystal clear when your equipment payment is tied to the revenue stream of your business. I’m not telling you anything new, but traditional financing that requires payments 12 months of the year throughout the term of the lease can be a heavy burden on seasonal businesses. Particularly when you generate nearly 100% of revenue within a 5-month period.

If you’re interested in learning more about our Snow Resort Financing Program or are curious to find out what your monthly payments would be on a snow making purchase, please feel free to contact me. We’d really like to help. Thanks for your interest and have a great season.