So Cal Financing and Leasing / Financing Services

What We Do

Understanding clients needs
Vendor Relationships
Making the right connections
National client base

We care about your company and its' growth. We understand that for most businesses growth cannot happen until the financing has been secured. We take pride in understanding our customers’ need for expansion.

We will assist you in understanding bankers’ language. One thing to keep in mind is that we will help you address the Five C’s, which are:

Character Capital Collateral Capacity Condition

Character refers to your reputation; Capital relates to your capital reserves; Collateral is your assets; Capacity is your ability to repay; and Condition refers to the overall Condition of the company. Additionally we will help you to understand how a bank evaluates your business and how to develop a productive relationship with financial institutions.

We understand that our customers have many obligations to fulfill such as finance, marketing, lead generation, sales, and product/service fulfillment. Sometimes it seems these needs must be met simultaneously. We want you to leave the financial part to us. So Cal Financing and Leasing is a company you can trust. We want you to delegate your financial needs to us. Our 15 years in business have left us feeling very proud of our customers, banking relationships and all that has helped us maintain our reputation.

The benefits of leasing:

Lease financing costs less than a conventional bank loan. Factors to consider, when comparing financing options.

Flexibility
Growth opportunities
Reinvestment options
Preserve existing credit lines
Less cash outlay requirements
Upgrade or add on as your business needs change
Eliminate worries about technological obsolescence
Use the newest equipment available for your industry
Structure payments to match your business' income stream
Avoid down payments and increase your cash flow with 100% financing

Quick and easy financing:

Specialists — Our knowable staff will help you make the right financing choice for your business.

Same Day Approvals — Equipment financing approvals in as little as 24 hours. Submit our simple one page application for up to $100,000 and get an answer in less then twenty-four hours. For larger amounts, include additional financial statements and get a response in three business days or less.

Lease Line of Credit — If you're not ready to acquire equipment now, we have a lease line of credit to ensure that financing is there when you need it. Knowing that you already have your financing in place can give you the leverage you need to negotiate for the best equipment possible. We support equipment acquisitions from multiple vendors on the same lease agreement.

Get the equipment you need to maintain your company's competitive edge.

We put together financing solutions to meet your specific business objectives, today, tomorrow and as your business grows.

So Cal Financing and Leasing is an experienced lessor serving companies within a wide variety of industries. We take the time to understand your business. Let one of our financing experts demonstrate how you can get the equipment you need while enhancing your cash flow and planning for long-term success.

Why Lease? - Leasing can help your business:

Top reasons companies choose leasing, instead of traditional financing:

Skip Payments
Conserve Cash
Tax Advantages
Tax implications
Greater Flexibility
Never Be Obsolete
No down payments
Preserves Bank Lines
Guaranteed ownership
Fixed Monthly Payments
Rapid technological changes
Virtually 100% PLUS Financing
Little or no upfront capital outlay
More accommodating than banks
Less stringent financial requirements
Specified purchase options at lease end
Affordable and flexible monthly payments
Some leases payments are fully tax deductible
The flexibility to return the equipment at lease end
Maximize productivity by using the latest equipment
Varying monthly payments to match seasonal cash flow
Payments May be Fully Tax Deductible as an expense item
Match lease terms to expected useful life of the equipment
If an asset appreciates Buy It... If an asset depreciates LEASE IT!!
There are two ways leasing can help you manage your tax liability.
Leasing options let you plan financing around the needs of your business.
100% financing, including "soft" costs like shipping, installation and training
Some leases offer the tax benefits of ownership (depreciation and interest expense deductions)
Technology changes fast. Don't get locked into obsolete equipment that needs to be replaced. Leasing gives you the ability to adapt to changes and stay competitive.
Poor cash flow is one of the primary reasons businesses fail. Paying cash for equipment or even making large down payments can deplete your reserves. Leasing helps you hang on to your cash.

Leasing Basics

Leasing structures should be tailored to your business needs to obtain the maximum tax benefits allowed by law. You should speak with your tax advisor to find out the best structure for your business. Below is some information to help you understand leasing classifications as well as the basic terminology.

The Internal Revenue Service (IRS) and the Federal Accounting Standards Board (FASB) are two separate entities that have an interest in how a lessee and lessor classify a lease transaction. The IRS and FASB have separate methods for classifying leases. This gives you many different lease types to achieve the maximum tax benefits.
Tax reporting goal — Minimize taxable income by maximizing tax deductions
Financial accounting goal — Maximize income and profitability
The leasing industry offers different leasing products. Tax reporting leasing products and financial reporting leasing products.

Minimize Taxable Income, Maximize Tax Deductions

Tax Reporting Leasing Products - In classifying the lease as a tax or non-tax lease, the IRS looks at the risks and rewards of equipment ownership. The IRS seeks to determine whether the lease agreement is a tax or non-tax lease based on the apparent intent of the lessee and the lessor at the beginning of the lease.

Tax Lease — In a tax lease, the lessor is the owner of the equipment for federal income tax purposes. The lessor receives the right to the tax benefits of ownership, including depreciation and any tax credits. The lessee also receives a tax benefit by being allowed to claim the entire lease payment as a business expense, thus lowering the businesses' taxable income.

Non-Tax Lease — With a non-tax lease, the IRS treats the lease as if it were a purchase or loan for tax purposes. The lessee receives the tax benefit of ownership, including depreciation.

Maximize Income and Profitability

Financial Reporting Leasing- Financial reporting refers to the accounting presentation of leases in the financial statements of lessors and lessees. Financial reporting is strictly defined by rules of the FASB. All leases are classified as either a capital lease or an operating lease for financial reporting purposes.

Capital Lease — The FASB classification of a lease is based upon whether it looks like the lessee is purchasing the equipment or only using it. According to FASB criteria if the basis of the transaction is a purchase of equipment in the form of a lease, it is called a capital lease. The lease is considered a capital lease if the lessee will:

Acquire the asset at the end of the term
Use the asset for most of its useful life
Pay a significant portion of its cost during the lease term

A capital lease is treated as a purchase, and the equipment is shown as an asset and a liability on the lessee's business balance sheet.

Operating Lease — If a lessee does not acquire the asset, does not use the asset for most of its useful life, or does not pay a significant portion of its cost during the lease term, the FASB considers the lease an operating lease. The operating lease is accounted for as a pure rental and the equipment is neither shown as a liability nor an asset on the lessee's business balance sheet.

You should speak with your tax advisor to find out the best structure for your business.