When this service may fit
A useful starting point for these transactions
- Businesses prioritizing cash-flow planning
- Assets with a defined productive life
- New or used equipment purchases
- Companies comparing lease and ownership structures
- Seasonal structures where available
- Documented equipment packages
A lease is a structure, not a universal answer
Leasing may offer lower initial cash requirements or different end-of-term choices than a conventional purchase loan, but the details matter. Payment timing, term, residual, purchase option, tax treatment and early-payout provisions can materially change the result.
Merrit Capital presents the available structure in plain language so the business can make an informed decision with its accountant and advisors.
Match the term to the equipment
A productive-life mismatch can create pressure—for example, paying for an asset long after it is obsolete, or compressing payments for durable equipment into an unnecessarily short period. Lenders consider asset type, age, expected use and marketability when setting terms.
Seasonal or deferred structures may be available for certain transactions, but they are not automatic. The borrower, asset and timing all need to support the request.
Lease versus finance
A lease generally gives the lessor legal ownership during the term, with rights and options defined by the agreement. A financing contract is typically designed around the borrower acquiring ownership, subject to the lender’s security interest.
Tax and accounting treatment depends on the agreement and the business. Merrit Capital does not provide tax or legal advice; review the final structure with qualified advisors.