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One Dollar Option - This
is a financing arrangement, or capital lease, that passes title
to the lessee for $1.00 at the end of the lease.
Advantages include: Lessee retains depreciation rights, good when useful
life of equipment exceeds lease term, possible same year 100% expensing for
small businesses.
T en Percent Fixed Option - At the end of the lease term the customer may either exercise a
fixed option of ten percent of the original equipment cost or return
the equipment to the lessor.
Advantages include: Lower payment, fixed option amount, flexibility on
buying or returning equipment at the end of the lease. Depending on the equipment,
this type of lease may qualify as true lease for tax purposes.
T en Percent P.U.T. Option – Purchase
Upon Termination. At the end of the lease term the customer will
purchase the equipment for ten percent of the original equipment
cost and may only return the equipment with the lessor’s
consent.
Advantages include: Lower payment, fixed purchase amount at the end of
the lease, plus the lessee has all of the advantages of a One Dollar Option.
T rue
Lease, Operating Lease, or F.M.V. Lease - A lease
that does not contain set or bargain purchase option. The customer
may purchase the equipment at the end of the lease at the lessor’s
option otherwise the lessee must return the equipment to the
lessor.
Advantages include: Lower payment, payments can be deducted in full, debt
will not show up on the lessee’s balance sheet.
Custom
Programs - Leasing
is very flexible and we are happy to design a lease program that
meets your specific needs. Sample programs: No
money down, 90 day deferral, lease lines of credit, short term
0% FMV leases.
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