• Lease Purchase ($1 or Other Fixed Buy-Out)
    This plan allows you to buy the equipment at the end of the lease term for a fixed amount - often $1. However, other fixed amounts such as 10% are common. For most companies that intend to keep the equipment at the end of the lease, this is the best option. In essence, you are building "equity" in the equipment, so you can also sell the equipment at the end of the lease or trade it in for the latest technology. (AKA Capital Lease)
  • Operating Lease (Fair Market Value Buy-Out)
    This structure provides you with the option to purchase the equipment at the end of the lease for its then Fair Market Value, continue leasing the equipment based on its Fair Market Value, or return the equipment. The payment during the term is lower than on a lease purchase, but the total cost at the end of the lease is often higher. In some cases we can "cap" the Fair Market Value at 10-20% of the original cost of the equipment. The equipment being leased is usually not carried on your balance sheet and all of the lease payments can be expensed. This is the classic "off balance sheet" lease.
  • Tax Lease
    A Tax Lease permits the lessee to deduct the entire lease payment as an expense for Federal Income Tax purposes. We can structure your lease so it will qualify.
  • Venture Lease
    This lease is available to companies that have venture capital investment, although sometimes angel and strategic investors qualify. Personal guarantees are not required, but sometimes warrants are. Profitability is not expected and some companies are even pre-revenue. The structure is similar to the operating lease.
  • Federal Lease
    These are available to any Federal Governmental entity such as the Department of Defense (Army, Navy, etc.)
  • Municipal Lease
    This program is available to all city, county and state agencies such as public school districts, municipal hospitals, police and fire departments for essential equipment. Due to the tax exempt status of the Lessee, rates are much lower than standard commercial rates. Almost all leases are written with a clause giving the municipality the option to terminate the lease if funding is denied.

  • Some Additional Options

    • Deferred Payment
      This program is attractive to companies in which the equipment will be used for a project that won't generate revenue for a short period of time, possibly three to six months. The lease is structured so that the initial months have nominal or no payments.
    • Seasonal Payment
      This lease is designed for those businesses with seasonal cash flows. We can design a lease where the payments might be lower during the summer months and higher during the rest of the year.
    • Step-up / Step-down payments
      This can be structured so that lease payments can be set up to match a company's cash flow needs. Payments can start low and then increase during the later years of the lease, or payments can start high and then decrease, minimizing finance charges.

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