* You keep the depreciation * On Balance Sheet financing * Nominal Purchase Options (1-3%/$1.00 Buy-Outs) * Fixed Financing * Customers intent is to keep the equipment.
OPERATING LEASE(True Lease, Tax Lease, First Amendment Lease)
* Lower Payments * Fixed Financing * Can accomidate for FASB-13 requirements * Off Balance Sheet (Recorded as an expense) * Able to avoid covenants issues * Intent is to keep or return equipment * Higher residuals give the lower payment. * The lease expenses are treated as operating expense.
EQUIPMENT FINANCING AGREEMENTS
* An equipment loan. * Not a lease. * On balance sheet. * Pricing, not as agressive as a lease.
Please ask about out great ways to expand your business with additional sources of money!