Alternative Investment (6): Equipment Leasing

A lot of industries rely on heavy-duty equipment to generate revenue. Think medical, mining, farming, construction. You can be of value to these companies if you lease them the equipment they desperately need to turn a profit. Equipment leasing investing typically requires you to join a group of investors to create an equipment leasing fund. You will usually hold on to the equipment for 7 to 10 years before you sell it off at a depreciated value. One advantage to leasing equipment is earnings can be tax-deferred until the equipment is sold off. How it typically works is a fund manager acquires the equipment and finds a renter. Every month, investors in the fund receive a lease payment until the lease ends or the fund sells off the equipment.
Do your research and look at past investment records and industries to gauge potential returns before you invest.
A more indirect way to invest in equipment leasing is through a platform like Worthy Bonds. For as low as $10, you can earn 5% interest without having to pay any fees. Worthy Bonds works with small businesses and offers them loans to obtain equipment and inventory.

Sven Franssen