Types Of Equipment Leases
Also called Abandonment Lease , Capital Lease, Lease To Purchase or an Equipment Finance Agreement (EFA) where the lessee at the end of lease term owns the equipment for $1 or 10% purchase agreement. The leased equipment will show up on your balance sheet as an asset. Use this option to cover 100% of the purchase price, taxes, shipping and have your equipment pay for itself whether the equipment is new or used. Fixed payments, and finance charges get rolled into your payments. The lease gets its name because, at the end of the lease period, you’ll complete the payments on the asset for a nominal price, often $1.
Fair Market Value
Also called True Lease , at the end of the lease term the lessee has the option to purchase, upgrade, return or continue to lease the equipment. Use this lease option for off balance sheet accounting, it can cover 100% of the purchase price, taxes, shipping and lowers your monthly payments on new and used equipment. This allows you to write off each lease payment as an operating expense. When the lease term is up, you will have the option to renew the lease, upgrade the equipment, purchase it at Fair Market Value, or return it.
1st Year Lower Payment Lease
Quickly acquire new or used equipment, put it to work and make money right away. With the 1st Year Lower Payment Lease take advantage of lower payments for the first 12 months with graduated payments for the remaining term. This allows you to gain equity and build up sales without breaking your pocket book paying for the items you need in order for your business to thrive.
Deferred Payments (up to 90 Days or more)
Make money using the new or used equipment now before payments are due. The flexibility built into a Deferred Payment lease is good for businesses that experience fluctuating time periods of higher and lower revenue production.
Standard Lease terms are typically 24, 36, 48 or 60 months. The Bakers Dozen Promotions allow for 13, 20 or 27 month leases. Ideal for those who don’t want to pay interest on a longer term contract and save money on extra fee’s and taxes. With qualified credit, you will likely only need one- or two-months’ deposit for the lease upfront. This lease-to-own program means you own the equipment at the end of the lease with terms of 13 months, 20 months and 27 months.
Managing additional equipment is much easier. Separate lease schedules are created to accommodate the addition of equipment over a period of time. The Master Lease governs the basic terms and conditions. Each schedule may include different end of term options and different lease lengths but all will come under one Master Lease.
Compatible with State, City, County, School District, & Government Agency Requirements. Use this lease option for essential-use equipment, at attractive rates, with ownership at the end of the lease.
VBB (Vendor Buy Back)
Also called Purchase Upon Termination, Vendor owns the equipment at the end of the lessee lease term. For when you the vendor wants to own your customers equipment at the end of the customers lease term. Use this option to build profits. Provides vendor with quality used equipment at a fraction of wholesale cost.
Number one reason to offer a lease option…It Accelerates Your Sales Cycle
(Lease terms offered: 12 months thru 60 months)
Commercial Capital Makes It Easy for Vendors to Include Cost Per Copy for Their Lease Financing Customers