OPERATING LEASE / FINANCE LEASE / MASTER LEASE
OPERATING LEASE: Off Balance Sheet treatment that may enhance financial results. Provides numerous end of lease options. At the end of the lease term, the equipment can be purchased for fair market value, the lease can renew and the same monthly payments can be continued, or the equipment can be returned. This type of lease is typically used by companies that update or replace equipment on a regular basis and don’t want ownership responsibilities.
BUSINESS Operating Lease Benefits:
- Lowest Monthly Payment
- Provides Trade-Up Option
- Off Balance Sheet Treatment
- Deductible as an Operating Expense
FINANCE LEASE: Allows the customer to purchase the equipment at the end of the lease term for a set dollar amount, typically either $1.00 or 10% of the original equipment cost. This type of lease is typically used by companies that want to keep the equipment at the end of the lease term and that want to be able to depreciate the equipment.
Business and Equipment Finance Lease Benefits:
- Ownership at end of term
- Tax depreciation
Obtaining a Business or Equipment Master Lease
Master Lease: This type of transaction should be utilized when either several pieces of equipment are being purchased at separate times or to lock in a low fixed rate and when the appropriate equipment is located, the funds are immediately available. Being Pre-Approved can aid in the price negotiations between your company and the prospective equipment dealer/vendor.
Call Lease Genie today toll-free at (877) 715-5105 for a free no-obligation consultation, we look forward to helping you grow.