Equipment Loans & Leasing
Pinnacle provides equipment loans and leases to help you increase your revenue stream without draining your cash. When deciding between a loan and a lease, there are four key factors that should drive the decision-making process: length of ownership, cash flow, ability to obtain financing, and tax advantages. Unlike specialty leasing companies, Pinnacle's financial advisors approve both loans and leases. This allows us to be indifferent between lending and leasing, which in turn reassures our clients they have an objective financial partner who is focused solely on the best interest of the business.
The equipment itself is a long-term asset, expected to produce revenue over a lengthy period of time. Among variables Pinnacle's financial advisors will review in order to determine the appropriate financing options are: your company's cash flow to service principal and interest on the loan, and the equipment's impact on revenues. A company should typically match the length of term of the loan with the anticipated useful life of the equipment.
Leasing can offer a prudent and flexible means of procuring the equipment your company needs to be successful, while at the same time preserving cash and available credit lines. We offer commercial leases with a focus on:
- Finance Lease. A Finance Lease or non-tax lease is accounted for as a Capital Lease, where you gain the advantages of the ownership. It is classified as a purchase by you.
- Terminal Rental Adjustment Clause (TRAC) Lease. Essentially, this is a True Lease designed to finance licensed, titled motor vehicles (over the road tractors, trailers, trucks and buses) used in your business. The Terminal Residual Adjustment Clause enables customer to set residual values and purchase the vehicle for that residual value, at lease end, while maintaining operating lease status.
- Split TRAC Lease. A modified TRAC Lease whereby Pinnacle assumes part of the estimated residual value risk which may allow you to classify the transaction as an Operating Lease.
The decision to finance or lease should be discussed with your accountant for tax related advice.