Gain a business edge with equipment leasing

Transcript: Leasing benefits

Gain a business edge with equipment leasing

Why leasing equipment is a smart move in today’s economy

Newer equipment and technology can quickly improve productivity, create competitive advantages and jumpstart business growth. Given the uncertain economic environment, businesses are looking for ways to conserve capital and improve cash flow while remaining competitive. For those that plan to acquire new equipment to help jumpstart growth, leasing may provide numerous benefits. From lower upfront costs to flexibility, we will walk through some of reasons why leasing equipment with Wells Fargo makes sense in today’s economy:

Benefit #1: Improved cash flow

Lower monthly payments

For leasing transactions where Wells Fargo assumes the equipment residual risk, lease payments would usually be lower and have far less business impact than a sizable purchase price.

Begin using equipment immediately

Low monthly payments would allow you to manage budget constraints, especially when compared to a lump sum purchase, enabling you to acquire the equipment you need and put it to work right away.

Optimize working capital and cash flow

Without the large capital outlay of a purchase, cash would be available to strategically re-invest in your business. Spreading payments out over time could also improve cash flow. And if the lease doesn’t affect your credit lines, they could be preserved for other operating needs.

Generate liquidity from your existing assets

With a sale-leaseback, you could sell assets to us for us to lease them back to you, freeing up liquidity you could use for other more pressing business needs while not losing usage of your equipment.

Benefit #2: Lower asset risk

Avoid technological obsolescence

Various lease structures may allow you to stay ahead of the competition, by giving you the flexibility to upgrade to the latest equipment models when you need it, and to avoid keeping less utilized equipment beyond its useful life.

Maximize equipment productivity and reliability

Leasing could allow you to return or upgrade your equipment when it gets older, to avoid costly maintenance and optimize utilization.

Obtain maximum value from used equipment

Wells Fargo's expertise in equipment logistics, sales and dispositions enables us to obtain greater value for you on used equipment, which in turn could support favorable rates for you. And, you don't have to spend any of your time or resources trying to sell or dispose of equipment you no longer need.

Benefit #3: Flexibility and convenience

Equipment ownership flexibility

If you need equipment now for a temporary requirement, such as a specific job contract or new product development but are not sure if you'll need it for the long term, leasing may be the perfect solution. You'll have the flexibility to either return the equipment or keep it at end of lease term.

Customized payment structures

We can tailor lease payment options to meet your specific business and sales cycle, with monthly, quarterly, deferred, step, seasonal and extended payment terms.

Flexible options during and at the end of the lease

If you finance your equipment acquisition with a loan, you own the equipment throughout the loan term. If you pay cash, you own it, period. But with a lease, you may have the option to purchase, upgrade, add on or re-deploy assets. At the end of the lease, you may have the option to purchase, return, renew or continue to rent your equipment month-to-month.

Entire solution in one easy payment

Together with the equipment you lease, you may consolidate financing of other items, such as parts, accessories and maintenance contracts, into a single, convenient lease payment.

Wells Fargo Equipment Finance helps companies acquire the equipment they need by providing a wide range of flexible solutions. We bring together the benefits of extensive equipment and industry experience, customized offerings, and exceptional relationship management to serve the needs of our customers through all business cycles.

© 2023 Wells Fargo Bank, N.A. All rights reserved. All transactions are subject to credit approval. Some restrictions may apply. Wells Fargo Equipment Finance is the trade name for certain equipment leasing and finance businesses of Wells Fargo Bank, N.A. and its subsidiaries.