Is leasing right for me? Leasing has become a widely used alternative to financing for all types of business equipment. Approximately 80% of all businesses in America have leased equipment in the past. Of those, 95% said they would lease again. Over 150 billion dollars of equipment sales are leased in the US today. One of the many advantages to leasing is that there are several methods of lease structures. Companies can enjoy more freedom to manage cash flow and future business opportunities. It also allows for more than one method of accounting, giving you the ability to choose the one that most benefits your needs. Please continue to learn more of the many advantages that Leasing can provide.
Lease Types
Capital Leasescan be structured as a "Full Pay Out Lease known as a Dollar Buyout" or with fixed residual at the end of the lease term, typically 10% of the equipment cost.
Fair Market ValueLeasesare available that may be attractive to companies looking to acquire technology equipment that is usually out dated in less than 3 years.
TRAC-Leasesare typically used for fleet or transportation needs.
Operating Leaseswhich meet IRS FASB 13 guidelines which are considered a "True Lease", which helps company do off balance sheet financing.