AppleTree Leasing is not a giant company owned by a financial conglomerate. We have no outside loyalties. Our only job is to help you with your equipment finance needs. If you need equipment to make your business more profitable and don’t want to be just another account number in a large bureaucracy, we are your logical choice.

Through our network of underwriters and investors, we can meet the needs of a wide range of companies; from “A credit” to “Sub Prime” and from “Well established” to “Pure start up.” If we can’t do it, it probably can’t be done.
Why Should You Lease Equipment?

There are lots of reasons why leasing makes sense and why over 80% of companies including the largest “Fortune 500” giants, lease some or all of their equipment. Here are some of the most important ones:

1. Equipment Drives Production & Production Drives Revenue

Every piece of equipment you get means more ability to turn out product – and, therefore, more sales and revenue coming in. If you can’t expand your production capacity, you can’t grow your company. We know that and work to get you the equipment you need when you need it, not years later when you can finally save up the money.

2. Ownership Means Nothing - It’s The Use Of Equipment That Makes Money

You can’t confuse these two concepts. It is good to own things that are likely to go up in value – real estate, for instance. Owning obsolescence-prone technology like computers isn’t going to make you money because they will be worth little or nothing in a very short time.

On the other hand, paying for the use of equipment (as in a lease) let’s you move on to new and better technology when it becomes available.

3. You Have Better Uses for Your Precious Cash

There are many things you can do with extra cash that are more profitable than leaving it tied up in a piece of machinery that will soon be worthless. For instance, you can:
-set aside an emergency fund to carry you over tough times;
-take cash discounts;
-take advantage of quantity buying opportunities;
-invest in developing new products;
-expand your marketing efforts;
-hire top sales people;
-buy another company;
-buy something that will go up in value – like a building;
and more.

4. If You’re New In Business or Have Past Credit Problems, The Banks Won’t Help You

There’s an old saying that banks lend money to people who don’t need money. There is some truth to this because banks generally look for clean credit histories and long established businesses as loan customers.

The rest of us who might have some credit glitches – some slow pay records from a difficult time, a collection account or two and perhaps a small tax lien – are pretty much left out in the cold when it comes to financing equipment that will make or save us a lot of money. AppleTree Leasing’s underwriters understand this and routinely fund small, new and challenged businesses.

And here are some Other Advantages of Leasing:

Article 179 - Through a quirk in the tax laws, it is now possible for small businesses to "get paid in advance" to add equipment. Small businesses can write off up to $100,000 of equipment the year they put it in service. It is not necessary to depreciate it over several years. By lease/financing that equipment, you can have the government pay its share in front while you pay for the equipment over time.

Direct Tax Expensing – For companies not qualifying for or choosing the Article 179 alternative, lease payments are written off as made, eliminating the need for depreciation schedules and allowing faster write off. The result of this is more cash freed up for other uses than would be available in a purchase/depreciate environment..

"100% Plus" Financing - AppleTree leases can cover everything you need to make your equipment work for you. This includes software, installation, related leasehold improvements and training. All of this reduces your initial costs to minimal levels, letting you earn profits from your new equipment faster.

Proven Alternative – Over 32% of all equipment acquired in the US is acquired under a lease contract. This makes leasing the single largest form of external corporate finance in the country. The vast majority of companies, from small start ups to the "Fortune 500," lease some or all of their equipment.

Variable Payments - Lease payments can be matched to projected revenues; seasonal cash flow variations and budget limitations; o the need to divert cash, or add to outstanding loans is eliminated. Our leases can be structured with no (or low) payments for up to two years, with payments rising as cash flow increases; and there are other structuring alternatives available as well.

Financial Reporting Advantages – AppleTree can structure leases to meet FASB requirements for “off balance sheet” accounting treatment. Doing that keeps the owed lease payments from showing up as a liability on your balance sheet. As a result, your overall ratios look better.

Protecting Bank Lines - Banks lines are extremely valuable for short term needs and emergencies so reducing their availability with equipment loans can be dangerous. Banks are better at providing short term credit lines than they are at fixed term equipment loans. Let your bank do what it does best.

Avoiding Bank Restrictions – Podium leases don’t include blanket liens, restrictive covenants, rate escalator clauses, “call anytime” provisions, compensating balance requirements (which raise your real cost of money since they are lending you some of your own money and charging you for it); or any of those other nasty little surprises that tend to be part of traditional lending arrangements.