A capital lease may also be referred to as a nominal or ($1) dollar-buyout lease. Capital leases as a whole share the advantage of fixed monthly payments but with the guaranteed option to purchase the equipment for a nominal price at the conclusion of the lease.
$1 Purchase Option
The entire purchase amount is financed. At the end of the lease a $1.00 payment is made and the equipment is yours.
Has the advantage of a lower monthly payment. At the end of the lease, a lump payment is made which is equal to 10% of the purchase price. Equipment is owned after 10% payment is made.
With this type of lease there is no uncertainty about the value of the equipment at the conclusion of the lease as the buyout terms are generally a part of the initial agreement.
True leases, commonly referred to as fair market value leases, are great way to stay ahead of rapidly changing technology and allow for upgrading to new equipment as needed. Fair Market Value leases also allow you to expense your payments and accelerate depreciation.
At the culmination of a true lease, the lessee typically has the option to purchase the equipment at fair market value or may return the equipment to the lessor. In many instances, the FMV is capped at 10%. Consult your tax advisor for other tax benefits.
Creative Leasing Options
At Trust Capital, we can design a financing program that gives you the tools you need to succeed and offer a variety of creative financing options, including:
Our flexible financing solutions and amazing customer service allow us to find out what your needs are and meet them.
Recently purchased the equipment but need the cash flow? We can help!
Step Up/Down Payments
Expecting to see increased revenue over time? Start with low payments and increase them as your business prospers.
Our application process is easy. Simply fill out our quick, online application and start the process of securing financing for your start up practice. Our knowledgeable finance experts are here to assist you in obtaining a start up financing loan.
If you have any questions, we invite you to contact us