PNC Equipment Finance has become a reliable leader in lease financing by helping smaller business owners and finance managers appreciate and reap the bottom line benefits of leasing equipment.
Leasing enables you to obtain the equipment and improvements needed to grow your business? without tying up your working capital or valuable credit lines. PNC Equipment Finance is an expert in the business and in your business. Access to our expertise builds confidence in your decisions and a competitive advantage for your company.
We help PNC business banking customers understand the benefits to leases and loans with investments in business equipment. We consider the needs and goals of your company first and then help you determine which type of financing will be more beneficial. With our more than 30 years of experience, we provide customized leasing products matched to your revenue stream and need.
According to the Equipment Leasing and Finance Association's most recent survey, companies of all sizes lease equipment and assets for three primary reasons:
Here are just a few of the reasons that equipment leasing may be more beneficial than other types of financing:
Fair Market Value lease - This lease structure will have the lowest monthly payment, the most flexibility for the customer and possible tax and accounting advantages (customer should always check with tax and accounting advisors as to advantages available with leasing). End-of-term options include: purchasing the equipment for its fair market value, returning the equipment to PNC or renewing the lease.
Fixed Purchase Option lease - This structure will generally have a slightly higher payment than the fair market value structure but provides a 'cap' to the purchase amount at lease termination. End-of-term options are the same as the Fair Market Value structure except purchase of equipment is 10% of the original equipment cost.
One Dollar Buyout lease - Similar to a loan but offers 100% financing and various soft costs can be included in the lease.
TRAC lease - This structure is used for over-the-road vehicles and large commercial vehicles. Includes a stated purchase amount at lease termination that is guaranteed by the customer.
There are other custom structures we offer, including seasonal payments, step up payments, skip payments and 90-day deferred payments.
Things to keep in mind:
With leasing, you are paying to use the equipment rather than to own it. Lease rates vary, depending on the lease structure, equipment type and term.
Even though you are not the owner of the equipment, you have control over payment to the equipment vendor. No payment is made to the equipment vendor until you have delivered a signed "Certificate of Acceptance" to PNC, confirming that you are authorizing payment to the vendor.
Payments are typically due on the first of the month. A pro-rated payment will be invoiced from the date of acceptance until lease commencement date.