What Is Micro-Ticket Financing?

Most small business owners have less than $12,000 sitting around and can’t afford to front significant purchases, but they still need to procure equipment to power their dreams. And yet: if what they need costs less than $15,000, good luck getting a bank to glance at that loan application. Micro-ticket leasing can help entrepreneurs obtain equipment at a manageable monthly price without hitting their credit scores and future borrowing prospects. Here’s how it works and why it’s a smart option.

How Much Is a Micro-Ticket Lease? 

Equipment leasing arrangements (sometimes called “tickets” in the industry) can span a wide range of amounts, from $500 on the lower end to several million dollars. Because the risks and demands of leasing can vary widely between amounts, financiers break down tickets into these segments:

  • Micro: Up to $25,000
  • Small: $25,000 - $250,000
  • Middle: $250,000 - $5 million
  • Large: Over $5 million

Over $1 trillion in equipment value has been secured by leasing, and micro- and small tickets account for one-third of that amount—meaning that, by volume, most equipment leases land at $250,000 and below. Clearly, many entrepreneurs take advantage of these leasing options to start and grow their businesses.

Banks Can’t Offer Micro-Ticket Leasing

 

Traditional lending institutions, such as banks, assess risk on a different model because they disburse cash, not equipment. Banks require extensive applications, including reams of paperwork, which are then forwarded to a human underwriter to evaluate. Underwriting is a skilled job that requires time and compensation, regardless of whether or not the loan is approved, and the process can take months. In short: banks can’t afford to loan less than $15,000 because of underwriting costs.

Point-of-sale lessors like Clicklease, on the other hand, are working with self-collateralized equipment, which is much less risky than cash and can be repossessed if payments default. Because of the lower risk profile, Clicklease applications are evaluated by a proprietary algorithm, which returns approvals within minutes. And because we’re not paying underwriting fees, we can offer leasing as low as $500 and up to $25,000. 

Micro-Ticketing Offers More Flexibility than Loans 

Beyond accommodating a broader range of amounts than traditional lending, micro-ticket leasing offers several advantages to small business owners—especially those just starting out or running a side hustle.

Because the leasing is tied to a specific piece of equipment, the risk to the business as a whole decreases—other assets beyond the leased equipment won’t be repossessed if the lease defaults. Entrepreneurs can feel more comfortable taking a chance on new equipment while protecting their existing assets.

Additionally, micro-ticket leasing covers the exact amount of capital needed. Applicants don’t need to worry about not having enough to cover their costs or taking a hit from getting more capital than they need. 

Over the long term, equipment leasing allows business owners to keep their options open and stay agile. Instead of forking over a lump sum, they can preserve a stash of cash for emergencies and make small monthly payments. Additionally, because Clicklease applications don’t trigger a hard credit pull, their credit scores won’t be damaged by applying—so they’re still able to secure traditional loans if they need to.

Finally, micro-ticket leasing can benefit your equipment selling business, too. Clicklease handles processing and payments; you get fully funded for your sale with no fees and no hassle. 


Ready to transition to point-of-sale leasing for your customers? Clicklease can integrate easily into your existing storefront. Let’s chat.

 

The content linked to clicklease.com has been compiled from a variety of sources and should not be considered the official position of Clicklease, its Employees or Officers. Data and opinions included are provided for convenience, may contain errors or omissions, and consequently should not be relied upon for making business or investment decisions. Clicklease encourages its site visitors to use the information provided at their own risk, and recommends visitors do their own direct research.