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This
is a brief description of some of the different types of leases we
underwrite.
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Capital
Leases |
| If long-term ownership
of the equipment is your goal, a capital lease might be your best choice. It
would be categorized on your balance sheet just like a bank loan, with
deductible interest expense on your income statement. But, at the end of your
lease, you will purchase the equipment for a fixed, nominal sum. |
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Custom
Lease Programs |
| We
offer programs more specifically designed for your particular needs
with customized payment streams. These plans may include
deferred, seasonally adjusted or step-up/step-down payment schedules.
We also have leases that can accommodate a vendor requiring deposits
for specially manufactured or custom designed products. Our hard asset
leases offer higher residuals and are ideal for machine tools and
heavy equipment. Our software and technology update plans allow
you to keep your systems maintained and up to date, while budgeting a
fixed monthly investment. |
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Medical
Leases |
| These
programs are designed to serve the needs of doctors, dentists,
veterinarians and various other medical fields. We understand
that a medical provider typically needs access to substantial credit
lines with minimal paperwork. We offer medical programs for
equipment and working lines of credit for existing and new practices. |
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Municipal
Leases |
| Municipal
Lease transactions can be provided for states and their political
subdivisions such as counties and cities. Departments or agencies such
as state universities, fire and police departments, school districts,
sanitation, hospitals, or special districts may also eligible. A
Municipal Lease has many of the characteristics of a standard
commercial lease, however, there are three primary differences; (1) The
intent of the lessee is to purchase with no significant residual at
the end of the lease term. (2) The payments include principal
and interest, with the interest being exempt from Federal income
taxation to the recipient and (3) The Municipal Lease allows for early
termination due to non-appropriation of funds by the Government
Agency. |
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Percentage
Purchase
Option Leases |
| These
programs are designed for those customers who would like to have the
opportunity to purchase the equipment at the end of the lease, without
making that commitment now. They
allow the customers, at the end of the lease term, to either turn in,
continue to lease or purchase the equipment for a pre-established
percentage (usually 5%, 10%, 20% or 30%) of the original cost. |
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Start
Up/New Business Leases |
| "Start-up"
and "New" businesses are beyond the idea stage and are
getting ready to open or were stated within the past 2 years.
These companies traditionally incorporate additional elements of
credit risk and, consequently, the payments are somewhat higher and
the credit standards more stringent. The principals personal
credit and related business experience will be carefully reviewed to
consider an application under this program. |
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Structured
Leases |
| We
offer programs for transactions that do not qualify because of credit
issues, time in business or industry problems. We have the
ability to do transactions with additional collateral such as
equipment, real estate, boats, vehicles, life insurance cash value,
CD's or publicly traded stock. |
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TRAC
Leases |
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A
TRAC lease is a special type of true lease that is generally used for
"over-the-road" vehicles like trucks, tractors and trailers.
Special provisions of the IRS code allow for pre-determined residual
values (as opposed to "future, fair market values) to be
negotiated in advance while maintaining the "full
deductibility" of a true lease. The
lessor would retain the rights to any depreciation. |
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True
Leases |
| A true lease, by definition, does not call for
the full payout of the equipment cost during the lease term, nor
does a true lease contemplate a transfer of title following the conclusion of
the lease. The lessee is only paying for the equipment during a
portion of that equipment's useful life.
The lease generally does not appear on the balance sheet as a business
asset or as a business liability. A true lease may include an fair market
value (FMV) option, which allows the lessee to
purchase the equipment for its legitimate fair market
value at the time the lease terminates. |
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