Dry Cleaning Equipment Leasing Key Terms

Make smart finance decisions by understanding dry cleaning equipment leasing key terms

Dry cleaning equipment leases are financing agreements that allow the small business owner to reduce overhead costs and improve cash flow. You can lease different types of dry cleaning equipment, including pressing machines, vacuums, air compressors and commercial dry cleaning machines.

When looking at dry cleaning equipment lease providers, you’ll see several terms that describe your lease options as well as the process of applying for an equipment lease. Understanding these key terms can help you make a knowledgeable decision regarding your dry cleaning equipment lease.

 

Dry cleaning equipment consultants

When you are planning to lease, you are likely going to want to meet with a dry cleaning equipment consultant. These consultants will help you not only determine the equipment that you need to buy, but also which financing option will work best for you.
Try: HJ Ventures discusses the roles of a dry cleaning equipment consultant and the benefits of hiring an advisor.

True lease

With a true lease, you will not maintain ownership of the dry cleaning equipment, but rather have the ability to operate the equipment for the length of the agreement. At the end of the true lease, you will return the equipment to the provider.
Try: Capital Funds Leasing is a provider of dry cleaning equipment leases and defines the meaning of a true lease, also referred to as a tax lease.

100% finance programs

You are likely to hear the term 100% finance programs tossed out by dry cleaning equipment leasing companies. This means that you can finance the entire equipment required for your company, including training, maintenance and tax charges.
Try: Direct Capital, a dry cleaning equipment lease company, details their 100% finance program on their website.

Second chance lease program

A second chance lease program is a finance option for dry cleaning business owners that have poor credit history or have claimed bankruptcy in the past.
Try: Read about the second chance program for dry cleaning equipment leases on the Pinnacle Funding website.

Dollar buy-out lease

Dry cleaning equipment leases will have several end-of-term options available to customers. End of term options are ways that you can buy out of an equipment lease agreement, including dollar buy-outs. With a dollar buy-out lease, you pay $1 at the end of the lease term to own the equipment.
Try: Get a definition for dollar buy out lease on dry cleaning equipment provider Five Point Capital.

AMT double taxation

Many dry cleaning equipment lease programs will point out the tax benefits of leasing, including the avoidance of Alternative Minimum Tax (AMT) double taxation. AMT double taxation is a law passed by congress that taxes businesses that claim equipment depreciation.
Try: Read about AMT double taxation and the advantages of using an equipment lease to avoid this tax on Equipment Leasing.

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