Types of Leases
  • Operating Lease
    Operating Leases provide 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 and who don’t want ownership responsibilities.
    Operating Lease Benefits:
    • Lowest Monthly Payment
    • Provides Trade-Up Option
    • Off Balance Sheet Treatment
    • Deductible as an Operating Expense
  • Finance Lease
    Finance Leases allow 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.
    Finance Lease Benefits:
    • Ownership at end of term
    • Tax depreciation