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EQUIPMENT LEASING OPTIONS

CAPITAL LEASE

The term covers the equipment’s useful life. With the final payment the Lessee can extend the lease, upgrade the equipment, or buy it for a predetermined lump sum.

FAIR MARKET VALUE

Similar to a rental agreement, with a term normally limited to 75% of the useful life of the equipment. With the final payment the Lessee either surrenders the equipment or buys it at its “fair market value”.

TERMINAL RENTAL ADJUSTMENT CLAUSE (TRAC) 

At the expiration date, your company has the option of re-leasing the equipment, selling it or buying it for a predetermined amount.

Engineer Working on Machinery

CONDITIONAL SALES CONTRACT

This type of installment contract (your company purchases the equipment with certain terms and conditions of payment) gives your company possession and full use of the equipment and transfer of title once the equipment has been paid off.

STEP-UP AND STEP-DOWN

Match your lease payments with the revenue streams of your business. This allows you to arrange payments to either increase or decrease throughout your lease term

SALE AND LEASEBACK

The Lessor purchases equipment that your company already owns and leases it back to your company at agreed upon terms and conditions. This type of transactions permits your company to raise working capital by leveraging the unencumbered equity in the equipment that you already own.

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