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The Benefits of Leasing Equipment through a Leasing Firm Instead of a Bank

Established in 1988, Balboa Capital Corp. strives to build strategic partnerships with members of several different industries and provide them with suitable equipment financing options. The company understands that business owners must survey all possible choices when making a decision about leases and other financial matters. This is why the equipment leasing company keeps all payments on a lease the same, no matter how the current market and inflation rates change. If a business leases equipment through a bank, it is susceptible to inconsistent terms and rates over the length of the lease.


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Furthermore, Balboa Capital reviews only the equipment financed as a debt source when evaluating a client for a possible lease. When banks lease equipment, they may research the client’s personal home loan, medical, auto, or credit card debt. These issues can sometimes contribute to a loan being denied, while equipment leasing companies utilize a simpler method that makes the whole leasing process easier and more efficient. Leasing through an equipment leasing company also allows clients to maintain a sufficient amount of capital with their banks.


Clients should consider the speed involved in obtaining a loan to finance equipment. Balboa Capital usually obtains a credit decision for financing within 24 hours on app-only transactions. Banks, on the other hand, can sometimes get caught up in the process of surveying a client’s credit history and detailed financials. Lastly, another benefit of using an equipment leasing company is the reporting of the lease as a monthly expense instead of a debt, while a bank loan is reported as a debt on a credit report. Visit the Balboa Capital website at for more information about equipment leasing.

Types of Equipment Leases Offered at Balboa Capital

Balboa Capital, a prominent equipment leasing company that caters to the needs of small- to mid-sized businesses nationwide, offers a variety of financing programs to help owners obtain the equipment they require to keep their companies running. The following is a brief overview of the equipment leasing programs available at Balboa Capital.

Fair Market Value – Commonly referred to as a True Lease, the Fair Market Value Lease represents one of the most common leases clients receive from Balboa Capital. The Fair Market Value Lease offers clients a number of flexible options at the end of the lease, such as the decision to either return the equipment or purchase it at fair market value. This type of lease is most widely used among clients seeking equipment that rapidly loses its value after being used.

Dollar Buyout – Another common lease offered at Balboa Capital, the Dollar Buyout Lease is often referred to as the Capital Lease. With the Dollar Buyout Lease, the client retains the ability to purchase the equipment outright at the conclusion of the lease for a price of one dollar. For customers wishing to keep the equipment at the end of the lease, the Dollar Buyout Lease remains a popular choice.

Business Expansion – For small- to mid-sized businesses attempting to open a new location as an expansion, Balboa Capital can provide up to $35,000 in equipment financing for the secondary location. When submitting an application for a business expansion lease, applicants must own the new property for a minimum of five years and use it for the same type of business as the original location. Clients seeking financing in excess of $35,000 must submit a full financial package and meet certain credit approval standards.

New Business – Through its New Business Program, Balboa Capital can provide up to $15,000 in equipment financing for business that have been operating for less than two years. Businesses in their second year of operation can qualify for an additional $5,000 in financing, provided they submit personal information and guarantees and meet certain credit requirements.

Sale Lease Back – For clients who have recently purchased equipment, Balboa Capital can help convert the equipment purchase into a lease. By facilitating low monthly payments on equipment acquired within the last 90 days, Balboa Capital helps small- to mid-sized business owners recoup their investment and receive cash immediately.

Balboa Capital’s Vendor Program

As a leading business equipment funding firm, Balboa Capital relies on more than 20 years of experience to provide unique solutions for businesses that need expensive capital equipment. As suppliers work with their customers, few financing options are available, leading to increased customer objections based on price and affordability. Balboa Capital’s vendor program removes the emphasis from price, allowing both the retailer and its clientele to instead focus on a product’s performance value. At the same time, the vendor program gives merchants another marketing tool, enabling them to offer leasing plans backed by Balboa Capital. This results in more satisfied clients, who appreciate having flexible and affordable payment options.

Balboa Capital’s program enables organizations to lease almost all types of necessary new or used business equipment. Doing so can help to improve company cash flow and avoid tying up cash assets in capital equipment. Vendors that participate in this program offer their customers greater liquidity and flexibility when obtaining equipment to operate their businesses. A vendor’s client may need to make between zero and two monthly lease payments upfront, but versatile lease structuring options create synergy with the organization’s unique financial status. Both credit-challenged companies and those with excellent credit may benefit from a leasing program backed by Balboa Capital.

Merchants seeking flexibility in working with their business clients can learn more about Balboa Capital’s vendor program at


April 4, 2011 1 comment

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