Captive Leasing

Kellian Business Finance offers capital equipment manufacturers and vendors the opportunity to own their own leasing company to provide financing for their customers. With our outsourced captive lease program, Kellian provides all of the services necessary to organize and operate your own leasing company. We do everything.

Our captive leasing program allows business equipment dealers the opportunity to invest in their own equipment leasing business and enjoy profits of 12% - 15%.

There are many ways to finance your own leasing company. A great way to provide funds for your leasing company is from your retirement plans. Other sources are your own company or personal funds from friends and family. 

All of the leases written will be finance leases, which include an option to purchase the leased equipment for $1 after all of the lease payments have been paid. With this type of lease, there is no residual risk as to equipment values at the end of the lease. The leases are generally written for periods of twenty-four to sixty months. The collateral for each lease would be the subject leased equipment, as well as the personal guarantees of the company’s owners. The minimum leased amount is $5,000. At document signing, the first payment and document fees are due.

A major advantage with a captive leasing company is that captive owners can make any changes or customize any aspects of the leasing products offered. Lease terms of any length, higher or lower minimum lease amounts, additions to the leased equipment totals, such as service contracts, training, installation, etc. Most independent leasing companies are very rigid as to the equipment they will finance and how they will finance it. No one knows your products or customers as well as you do.

We recommend a captive company leasing model in which equipment leases with your A-credit and B-credit lease customers are placed with leasing companies that offer rates ranging from 6% to 10%. While these have lower risk of loss, the potential lease yields are much lower. Currently, lease yields for C-credit, D-credit and new businesses would range between 12% and 24% and higher. Captive lease company owners can approve more C & D customers because of their greater knowledge of their customers, products, and likely results if any leased equipment required repossession, refurbishment and re-marketing.


The captive leasing company owner also has complete flexibility in determining how to handle the cash flows from monthly equipment lease payments. It may be more appropriate to re-invest monthly lease payments in new leases, thereby accelerating the compound effect. Maybe monthly disbursement of cash flows is a better option for some family members and friends that need additional monthly income. Flexibility in interest rates can be utilized for family income-splitting purposes.

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