Best Lease Advantage Promote Leasing Many Ways To Profit Program Highlights For Closers Equipment Corner The Power of Factory Financing Calculator Link Dealer Directory

Leasing is a flexible form of financing.

The lessee pays the lessor an agreed upon amount for a fixed period of time for the use of the asset.

The amount of the lease payment is directly related to the asset cost, the term of the lease and the lessee’s credit.

Contact:
Steve Joskowitz
to see what lease is best for you

1-800-BestLease
800-237-8532
FAX: 800-863-1394
stevej@best-lease.com

Flexible Leasing Options

$1.00 Purchase Option- Also called a finance lease or conditional sales agreement, because from a tax stand point it is treated just like a loan. Payments are spread over a fixed period of time and represent the full value of the asset. There is no residual or balloon payment at lease termination except $1.00.

10% or 20% Option- At lease termination the asset may be returned, purchased for the stated residual %, or the residual may be re-financed for a short term. Depending on your tax situation, lease payments may be fully tax deductible.

10% or 20% PUT- At lease termination the asset must be purchased for the stated residual or the residual may be re-financed for a short term.

Fair Market Value Lease- Otherwise known as a "True Lease". Since the lessor is considered the legal owner of the leased asset, this type of arrangement can be particularly attractive for companies acquiring an asset that is vulnerable to technological obsolescence, such as computers and software. Payments are lower than a full payout lease and qualify for full tax deductions. At lease termination the asset may be returned, purchased for the determined fair market value or re-leased.

Operating Lease- Usually for a shorter term, often used with high-tech or other obsolescence prone equipment. The lessor typically takes a significant residual position in the lease pricing, thereby bearing more of the risk of ownership. This allows for a lower payment for the lessee and full tax advantages. Additionally, operating leases allow for off-balance sheet financing because the asset is not recorded as an asset or liability on the lessee's balance sheet. End of lease options are the same as Fair Market Value Leases.

Municipal Lease- Offered to state and local government agencies for tax-exempt lease financing. Since the income the lessor derives is exempt from federal income taxes, lower payments are offered. Non-appropriation clauses are written into all municipal leases.

Skip Lease- Allow for periods where no payments are made. Seasonal businesses are the ideal candidates for this type of arrangement.

Step Lease- Payments can increase or decrease during the term of the lease. The amounts vary according to a pre-determined schedule. Increasing payments (step up) can be beneficial for businesses that are acquiring an income producing piece of equipment that earns little revenue at first, but will eventually produce higher levels of revenue.