Leasing food processing equipment is an excellent way for companies to protect cash positions. Yet still, obtain the production equipment needed to stay ahead of contract expectations. The processing industry is varied and covers food, beverages, spices, supplements, and 1,000s of specialties. Equipment Leases has been serving the top food processing operations in the USA for the past nine years. This experience allows us to tailor a lease financing to match the client’s specific needs. Again, protecting corporate cash positions and keeping production lines operational are here to help so the equipment can be purchased and installed on a production line.
Every business in the USA has benefited from several “pro-business” realities. These are low-interest rates, stimulus packages from the fed, and a very lenient regulatory environment the past few years as we all try to deal with the pandemic and its impact.
Fast forward to 2022, when the fed expects to tighten interest rates, the pandemic-related stimulus is over, and the feds are going to have to stop supporting this economy. Any one of these realities should move a growing business to consider lease financing and protecting corporate cash accounts to grow the business. Maintaining cash reserves will also help weather any unforeseen challenges brought on by the sweeping change that will take place.
Leasing provides tax advantages, 100% financing, favorable terms, fast funding, convenience, and the ability always to keep your production equipment the latest and most efficient models.
We can work with many more to help you design a flexible food processing equipment plan that will fit your needs and allow for further growth.
For more information or answers to your questions, contact Equipment Leases today.
The food processing industry is complex and incorporates numerous types of production needs. Including Canning, Fermentation, Freezing, Pasteurization, Smoking, Additives, and even making edible products from corn or wheat. Each of these specialties requires equipment and machinery designed to efficiently process a wide variety of consumer products that have been in high demand.
Equipment Leases Inc. has served the US food processing industry for the past nine years. Our experienced leasing specialists are invaluable in the process of acquiring just the right machinery to keep your production lines at total capacity uninterrupted. Our lenders have deep pockets and are willing to finance equipment as low as $25,000 to entire facilities requiring up to $30,000,000. We have the team to make the process from start to finish a transparent and straightforward experience for any CFO or purchasing manager.
For the past few years, access to capital has been easy and rates at historic lows. The feds keeping rates low and policies stimulating the economy’s growth have been ideal for running a business. The pandemic changed everything; however, complex supply chains, consumer lockdowns, industries shut down, and workers were afraid to work.
It has been a complex issue. From breakroom discussions to boardroom strategy sessions, every business has looked at its business with an intensity rarely seen before. The debate has also turned from using cash to buy equipment because savings rates were near zero to the strategic use of equipment leasing. Keeping production lines operating at peak capacity has been a challenge weathered beautifully by this resilient industry.
More and more CFOs, CEOs, accountants, and business advisors recommend exploring lease options to replace dated machinery or expand and buy new equipment. The attractive 100% financing, flexible terms, competitive rates, and easy underwriting have created a boom in the lease financing industry that should continue for the foreseeable future.
Food Processing equipment traditionally has a Normal Economic Useful Life (NEUL) of TWENTY YEARS. These types of assets are traditionally financed with a Fair Market Value (FMV) end of term lease. Executives in this vertical like to leverage the asset’s future value to have a lower operating cost today. We have funded Ovens, Vats, Canning & Bottling Equipment, Grain bins, Meat and Poultry Processing machines, Fruit Sorting machines, Conveyor Systems, Refrigeration Equipment, and Recovery Systems.
Not only are we able to provide FMV leases on these assets, but we have also funded them with Capital Leases and traditional Operating Leases.