All kinds of organizations, from banks and traditional financial companies to equipment manufacturers and dealers, offer lease financing. Of course, each source has its advantages and disadvantages, so it's in your best interest to understand your own financial needs and then match your needs with lease financial sources that most closely meet your needs.
Looking at the big picture, three major sources of lease financing exist: captive leasing companies, independent leasing companies, and banking institutions. In this article, we take a look at each source.
Captive teasing companies
Say you're in the market to buy a General Electric jet engine to keep as a spare at your Chicago aircraft maintenance facility. Where do you turn to lease the engine? Well, General Electric has an entire group General Electric Engine Leasing (GEEL) devoted to nothing more than making it as easy as possible for the company's customers to lease its products.
Many manufacturers especially manufacturers of big-ticket items include captive leasing operations (called "captive" because they most often exclusively finance products produced by their corporate parents) within their organizations as a way to increase product sales and make a little extra money while they're at it. Ford Motor Credit, Cat Financial |
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