“Leasing has clearly gained popularity in small firms… it is so much easier than going to a bank.” – The Wall Street Journal

Due to the varied nature of the cash flows of our customers, we specialize in providing payment schedule options tailored to our customers needs. In addition to standard payment options…monthly, quarterly, semi-annual, and annual, we offer a number of ways to structure a lease.

In all cases, the term is best determined by two factors… (1) the item to be leased and its projected longevity, and (2) the cash flow and tax needs of the customer.

Below we list and describe some of those options. We can work with you to develop one of these options that will be best suited to your needs. And if one of these isn’t what you need, we’ll custom tailor one for you!

Custom Tailored
Didn’t find one of the plans above that fit your needs? We often combine two of the plans for our customers; e.g., annual step down. Our representatives are empowered to be as creative as their customers needs. Working together, you will be able to develop a lease payment schedule acceptable to your needs. The space we have here could not begin to describe the payment plans we have developed over the years for our customers.

Most Common “End of Lease” Options

$1.00 BUY OUT
Also known as a capital lease and finance lease, $1.00 buy out is the closest option to straight bank financing. The lessee fulfills payment requirements for the duration of the lease, and once final payment is made along with $1.00, he/she becomes owner of the equipment.
Additionally, equipment must be shown as an asset and depreciated. It is not recommended that the equipment be written off as a rental expense. This simple option requires no further obligation, but one might keep in mind the monthly payments are slightly higher than an operating lease.

Also known as an operating lease, this option may be tax deductible under IRS guidelines and payments can be written off. The equipment can be purchased at the end of the lease for its current fair market value (an estimated 10%) or the lessee can return the equipment with no further obligations.

Also considered a combination of the capital and operating leases, this option can be 10%, 15%, or 20%. The lessee has the option to pay a predetermined percent of the original equipment cost at the end of the lease, or walk away. By leaving a residual at the end of the lease, the monthly payments are lowered. Tax benefits can also be taken advantage of.

We can help create a lease program that works for your business. Please contact us at 1-888-916-5200 or complete our request form.