Equipment Financing: What Your Banks, Brokers, and Vendors Aren’t Telling You

Every month we will provide you with an in-depth look into the key differences of choosing an independent leasing company such as Jules and Associates. We will breakdown each advantage to visibly compare the difference between a flexible independent lender versus banks, brokers, and vendors.

Why choose an independent lender such as Jules and Associates over a well-known bank?

  • We assist in balance sheet management by providing terms that meet covenant requirements (on or off-balance sheet lease structures)
  • We offer flexible trade-up programs

Banks do not offer these services. With covenants in place, limitations are put on your company that can curb potential expansions and restrict business and revenue targets. As for balance sheet management, covenants and de-risking are additional major points on why Jules and Associates is unlike a traditional bank. Covenants prevent the borrower from engaging in certain activities – they limit the borrower and are put in place by lenders to protect themselves from borrowers defaulting on their obligations.

Covenants are often represented in terms of financial ratios that must be maintained. Along with de-risking, Jules allows borrowers to spread out their debt and financial activities by not restricting themselves to a single provider.

When equipment is leased, both assets and liabilities on the balance sheet increase, accruing additional support and responsibilities. Finance lease expenses are allocated between interest expense and principal value much like a bond or loan; therefore, in a cash flow statement, part of the lease payments are reported under financing cash flow.

Offering the most flexible and customizable financing solutions, we stand-out from our banks, brokers, vendors and other leasing companies by also having the ability to provide trade-up finance programs, which alleviate stress and give our clients the option to make clear decisions that best fit their financial needs. It is always better to have options, especially when leasing large equipment that are key assets to operating your business.

But how do we really stack up against the other widely available leasing solutions?

As a top independent leaser, Jules and Associates delivers a hand-on approach tailored to fit a diverse range of industries and clients. Every month, we will break down each key advantage to highlight the pros and cons with an upfront comparison amongst our competitors. Here is a brief look at how we compare:

  • Freedom to choose the equipment and vendor best for your business
  • Use our own master lease and loan documents
  • Manage complex transactions involving multiple vendors, locations, delivery times and payments
  • 100% financing with no large down payment required
  • Fixed long-term financing
  • Flexible terms, including financing soft-costs such as software, installation and consultant costs
  • Offer both application only and full application programs
  • Provide marketing or return provisions for equipment at end of lease term
  • Offer customers equipment financing agreement/loans
  • Infuse a cash investment into every deal and maintain ownership interest in leased equipment

About Jules and Associates

As a top Los Angeles equipment financing specialist for the past 30 years, we have stayed true to our founding values and remain committed to offer flexible, straightforward and independent financing solutions to middle market companies. We understand that every company has its own unique financing requirements, which is why we offer you the freedom to choose the right vendor and the flexibility to customize funding amounts, term lengths, end of term buyouts and billing schedules. As of this year, we have over 26,100 transactions financed, over $1.5 billion in assets financed, $234 million in net assets, and have been ranked by Monitor Daily in their Top 100 largest equipment leasing companies and Top 20 independent leasing company in the United States.