Given today's economic climate and the rapid pace of technological obsolescence, nearly 8 in 10 U.S.[1] companies use some form of financing when acquiring equipment, according to the Equipment Leasing and Finance Association.[2] Through a successful Equipment or Vendor finance program, businesses can access acquisition solutions that allow them to benefit from the use of equipment or systems while making affordable monthly payments — assuring quick funding to manufacturers, dealers, distributors, and resellers. Financing allows a company to avoid many of the uncertainties associated with equipment ownership and shift their focus to using the equipment to grow their business. 

Companies choose to finance equipment, rather than purchase it, for many reasons, including:

Conservation of Capital
Financing doesn't require the cash outlay for a large purchase and can be used to overcome budget limitations. Existing cash and lines of credit remain free for other working capital needs to grow the business. 

100% Financing
Certain soft costs incurred in acquiring equipment can be financed, including delivery charges, sales taxes, installation, training costs and other fees. 

Obsolescence Protection 
Financing can provide the flexibility to trade up or add equipment when business demands it. 

Flexible Terms & Payment Structures 
Terms generally run from 24-84 months, depending on the type of equipment and credit standing. Payment plans can be structured to meet specific cash flow needs. 

Low Monthly Cost 
With leasing, businesses can enjoy full use of the equipment with low monthly payments. They can use the equipment to generate income without making up-front investments.

Hedge Against Inflation
Payments are locked in, which helps avoid the risk of rising inflation in the future. 

Tax Advantages
A company may be able to deduct monthly lease payments as an operating expense, such as the Section 179 Tax Deduction. PNC reccommends speaking with your tax accountant or financial advisor to determine if your business qualifies.

 Manufacturer Warranties
Any warranties are passed directly to the customer. 

Flexible End of Term Options 
With certain lease structures, there is an option to purchase the equipment, trade up to new equipment, return the equipment with no further obligation, or continue to make payments on a month-to-month basis.

Ready to Help

Consider leveraging an equipment or vendor finance program to offer your customers flexible equipment acquisition solutions, with a wide variety of benefits. For more information, visit pnc.com/equipmentfinance or pnc.com/vendorfinance.