Financing

Intec offers a variety of financing, leasing and rental programs for new and used insulation equipment. Here are a few advantages of financing and leasing to help with your decision. Please, always consult your tax advisor to know the best option for your needs.
Direct Capital Leasing

Advantages of Financing Insulation Equipment:

  • Tax Benefits - IRS Section 179, allowed for up to $500,000 in equipment purchases to be depreciated in the year in which they became operational. This tax treatment was more favorable than an operating lease, and the interest is expensed over the term of the loan for an additional bonus.
  • Stability - There is security in owning “long-lived” equipment because there are no surprises at the end of the lease or large balloon payments, especially with fair market value buy out options.
  • Flexibility - Loan agreements are typically more flexible than leases.  Loans often have options for early buyouts with fewer penalties than leases. 
  • Cost Savings - A company with sound cash flow and strong financial statements that is not concerned with impacting credit availability may find the nominal bank financing interest expense to be generally cheaper than the implicit interest in lease financing.
  • Can be Expensed - All soft costs (taxes, installation, shipping charges) related to the acquisition can be expensed on the profit and loss statement in the month in which they were incurred. This avoids interest-carrying cost, if cash flow allows.
  • Increased Asset - The finance option allows a company to add assets to the balance sheet and benefit from the annual depreciation and interest expense tax treatment.  Although you bear the risk of a depreciating asset, you enjoy the upside of equipment that holds its value, which is especially the case for non-technology equipment.

 

Advantages of Leasing Insulation Equipment:

  • No Surprise Costs - Offers fixed rate financing so you pay at the same rate monthly.
  • Inflation Friendly - As costs go up over the time of the lease, you still pay the same rate as when you began the lease, therefore making your dollar stretch farther. In addition, the lease is not connected to the success of the business. Therefore, no matter how well the business does, the lease rate never changes.
  • Less Cash Upfront - You do not need to make large cash payments for the purchase of needed equipment.
  • Better Utilization - Leasing better utilizes equipment as you lease and pay for equipment only for the time you need it.
  • Option to Buy - There is typically an option to buy equipment at end of lease term.
  • Continual Upgrades - As new equipment becomes available you can upgrade to the latest models each time your lease ends.
  • Easier Approval - Typically, it is easier to obtain lease financing than loans from commercial lenders.
  • Tax Benefits - Offers potential tax benefits depending on how the lease is structured.