Furniture, Fixtures, and Office Equipment Leasing

Often referred to as FF&E – Having chairs for customers to sit on, a desk to work from, or a cafeteria so your employees can enjoy lunch at work is critical to a business.  Most FF&E items do not have serial numbers and are very difficult to track from a collateral perspective.  Most banks shy away from financing furniture, fixtures, and office equipment because there is no future value or residual.  Office furniture is generally devalued at 40% on bank valuation tables on day one, and at 60 months, they have the value at 5% of the original cost, but the everyday economic useful life of office FF&E is 12 years!  It doesn’t make sense that a lender would not provide attractive terms on 12-year-life equipment.

We are willing to lease FF&E for between 3 and 5 years.  As long as there is adequate free cash flow, we are eager to fund these leases because they are considered “essential use.”