Equipment finance

Equipment finance describes a loan or lease that is used to obtain business equipment. It can be any tangible asset such as office furniture, machine tools, vehicles, computers, hospital MRI.

This type of equipment financing can be done by obtaining a loan to purchase equipment or by leasing equipment.
The choice between purchasing and leasing generally depends on the nature of the equipment to be financed and the borrower's ability to obtain a loan on favorable terms.
 
This type of financing allows the company to obtain equipment without carrying debt on its balance sheet. 

The options

There are two main options for equipment financing: 
-    obtaining a loan to purchase the equipment
-    leasing.

The choice depends primarily on the company's ability to borrow on good terms, but also on the life of the equipment.

Equipment leasing

Leasing equipment, rather than buying it, can be an attractive option for a number of reasons.

First, obtaining a loan to purchase equipment may not be viable if the borrower cannot cover the necessary down payment or qualify for the loan.

Second, leasing is often a less expensive option, especially for short-term financing, because it typically does not require a down payment and does not involve paying a large amount of interest.

Another reason businesses or business owners may consider leasing is related to the nature of the equipment being acquired. If you are looking to finance equipment that is quickly becoming obsolete and needs to be replaced, such as computer equipment or vehicles, leasing can be a much more favorable option. This gives you the opportunity to lease new, more modern equipment over time. Some leases include a purchase option at the end of the lease period. The most obvious consideration for a business owner in this case is whether they plan to purchase the leased equipment at the end.

The primary benefit of using a loan to finance equipment is to own the asset at the end of the loan term. The main advantage of leasing is not having to worry about obsolescence and loss of value of the equipment.

Societe Generale

Societe Generale, through its subsidiary Ayvens, is one of the world's leading car and truck leasing companies with a fleet of over 1.7 million vehicles. 
Societe Generale Equipment Finance offers its customers tailor-made financing and leasing solutions for distributors, traders, manufacturers and companies. SGEF puts its expertise in four areas at the service of its partners and clients:
-    Transportation;
-    Industrial equipment;
-    Technology;
-    Medical and renewable energy.