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10% Buyout Lease |
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10% Buyout Lease |
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| 10%
Purchase at Lease End – This type of lease is structured to allow for a
smaller monthly payment. The 10% is based on the original cost of the
equipment financed. The buyout can also be structured as an option to return
the which may allow a 100% write-off of the payment*. Advantages include:
Simplified paperwork compared to your bank. *Tax
benefits: Always check
with your accountant to verify how these tax benefits will affect your
company.
Leaves your bank line of credit available for other uses. Low
down payments: Preserves your working capital because leasing can be
structured with no
down payment and provides 100 percent financing, including ancillary costs,
such as shipping and installation. Operating capital is saved for
revenue-generating investments.
Equity investment: At the end of the lease, you own the equipment for 10%
of the original equipment cost.
Longer terms up to 84 months with fixed rates: Bank loans typically use floating rates and
these can be called in anytime during the loan. Leases offer fixed payments
through the entire term and are not callable on demand or subject to annual
renewals.
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