Commercial Leasing

Often, it makes more sense to lease your business equipment. There are many benefits to leasing, including freeing up your line of credit for use as short-term working capital.

Other benefits may include zero balance requirements, improved cash-flow management and potential tax benefits*. American Bank offers a wide range of commercial equipment lease options, from a finance lease to an operating lease. Your Commercial Leasing Specialist will be happy to discuss which lease is most suitable for your business.

Conserve Cash - Unlike other forms of financing, leasing often provides financing for 100% of the equipment cost. In addition, soft costs such as shipping, installation, software, training and taxes can be included in the transaction, thereby preserving cash reserves.

Keep Operating Lines of Credit Open for Short-term Working Capital - When the average time to convert receivables to cash increases, the strain on cash reserves is magnified. Bank operating lines of credit are designed for these short-term working capital needs.

Improve Cash Flow Management - If your company’s cash flow is seasonal it often makes sense to structure lease payments to the contract payments (leaving cash flow unaffected).

Lease Purchase Agreement - Your company can lock in the price to purchase the equipment at the end of the lease, thereby avoiding any unplanned expenses.

Off-Balance Sheet Accounting Treatment - Some leases qualify for off-balance sheet treatment. An accounting professional should always be consulted relative to these matters.

For more information, contact us at:
Metro: 651-643-8471
Albert Lea/Alden: 507-377-7000
Olivia/Renville: 320-523-1111

*Ask your tax adviser about tax deductibility.