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$1.00 Buyout Lease |
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$1.00 Buyout Lease |
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Business
Finance Loan – In the event you would like to write a conventional
loan as opposed to a lease where the buyer to
own the equipment at the end. A business loan is generally the same as a
$1.00 business lease the major difference is in the insurance requirements.
Simplified paperwork compared to your bank. Tax
benefits: Many customers qualify for a $108,000 write off under
Section 179
of the IRS Tax Code plus depreciation and interest expense. 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 requires 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 $1.00
or the specified amount.
Longer terms 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. Early
Payoff allowance: Allows for early payoff of lease as a principle balance
remaining payout plus a small fee of 5,4,3,2,1% depending on remaining
months on loan.
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