Financing

Operating Leases (FMV)

Fair Market Value (FMV) or Operating Leases are flexible financing options that allow businesses to use equipment for a set period without the burden of ownership. With lower monthly payments and potential tax benefits, these leases provide an affordable way to access the latest equipment while preserving cash flow. At the end of the lease term, businesses typically have the option to return, upgrade, or purchase the equipment at its fair market value. This solution is ideal for companies needing up-to-date equipment without long-term commitments.

Capital Leases ($1 Purchase/P.U.T)

Capital Leases ($1 Purchase Option) provide a path to ownership by allowing businesses to finance equipment with fixed monthly payments. Unlike an operating lease, a capital lease is structured more like a loan, where the lessee owns the equipment at the end of the term for just $1. This option is ideal for businesses that plan to keep the equipment long-term while benefiting from predictable payments and potential tax advantages, such as depreciation and interest expense deductions.

Trac Leases & Split Trac Leases

TRAC Leases & Split TRAC Leases are flexible financing options commonly used for commercial vehicles and equipment.

• TRAC (Terminal Rental Adjustment Clause) Leases offer lower monthly payments by deferring a portion of the equipment’s cost to the end of the lease term. At that point, the lessee can either purchase the equipment at a predetermined residual value or return it. This structure provides tax benefits and preserves cash flow.
• Split TRAC Leases function similarly but split the residual risk between the lessor and lessee. This means the lessee has limited financial responsibility if the equipment’s actual market value is lower than the residual amount at the end of the lease.

Both options provide businesses with cost-effective solutions for acquiring essential equipment while maintaining financial flexibility.

Equipment Loans

Equipment Loans provide businesses with a straightforward financing solution to purchase equipment while maintaining ownership from day one. With fixed monthly payments and flexible terms, these loans help companies acquire essential equipment without a large upfront investment. Borrowers can often benefit from tax advantages, such as depreciation and interest expense deductions. Equipment loans are ideal for businesses looking to invest in long-term assets while preserving cash flow for other operational needs.

Equipment Lines of Credit

Equipment Lines of Credit offer businesses a flexible financing option to acquire equipment as needed without reapplying for a new loan each time. Similar to a credit card but designed for equipment purchases, this revolving credit line allows companies to access funds up to a set limit, making it ideal for businesses with ongoing or seasonal equipment needs. Payments are only required on the amount used, helping to preserve cash flow while providing quick and convenient access to essential equipment

Refinancing of Used Equipment

Refinancing of Used Equipment allows businesses to unlock the equity in their existing equipment by converting it into working capital or restructuring debt for better terms. This financing option provides an opportunity to lower monthly payments, improve cash flow, or access funds for business expansion. By leveraging owned equipment, companies can secure financing without needing to purchase new assets, making it a cost-effective solution for maintaining financial flexibility while continuing operations.