Equipment Leasing Trusts (Essential Business Equipment)

State investor suitability rules apply – not suitable for all investors.
 
Leasing offers businesses an alternative to purchasing hard assets vital to the operation of business, especially items that are extremely expensive, or those that become obsolete within a relatively short period of time. An Equipment Leasing Trust gives the investor an opportunity to invest in the operational equipment that a company may need to operate. 
 
This type of program creates income from the lease payments, which is paid out to the investor as dividends. 
 
Leasing gives a company greater flexibility by freeing up Capital because lease payments are less than purchase payments. A company leasing its operational equipment also has the tax advantages. Unlike bank loans, lease obligations don’t appear as debt on a company’s financial statements. This can be helpful as major debt can make a company less attractive to investors. 
 
Additionally, because lease payments are typically less than purchase payments, this frees up capital to be dedicated elsewhere. At current corporate tax rates (2010 are 35%) leasing can be a financially attractive alternative to Corporate America.
 
Equipment Leasing programs offer an alternative that may not be directly correlated to the volatility of the stock market. They are typically illiquid investments which require a longer time commitment. Again, State or Federal Accreditation Standards may apply and may be speculative investments. Please discuss with an advisor prior to investing.

CFG Wealth Management offers securities and advisory services through Madison Avenue Securities, LLC. (MAS), Member FINRA / SIPC, and a Registered Investment Advisor.  This website is for informational use only and not intended to be a solicitation, recommendation, or endorsement of any kind.  The information should not be the sole basis of any decisions made.  This site is intended for the residents of states the advisors are licensed in.  Please inquire about your state with the advisor.  Any investment referenced generically has their own risks and disclosures and is not intended as a recommendation, solicitation, or investment advice. 

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