• Capital Lease

Also known as a $1.00 buy out lease. Consider this lease choice if you intend to own the equipment at the end of the lease or if the asset has an expected long life of use. A Capital Lease provides the benefits of ownership with the lessee taking depreciation and interest expenses related to the equipment. At the end of the term, full ownership of the equipment transfers to the lessee at a cost of $1.00.

• Operating Lease

Also known as a true lease, an operating lease provides the lowest monthly payment compared to any other lease. It can allow you to trade up or add equipment during the life of the lease and provides maximum end-of-term options such as:

          •Purchasing the equipment at the current market value
          •Upgrading to new equipment and a new lease.
          •Renewing the lease at substantial savings.
          •Returning the equipment

• Custom Residual Lease

This lease provides ownership at the end of the term at a fixed purchase price usually equal to 10% or 20% of the original transaction amount. This lease identifies the eventual purchase price at the start of the lease transaction. The end-of-lease options can include:
•Purchasing equipment for a predetermined percentage of the original purchase price.
•Renewing the lease.
•Returning the equipment.

• Equipment Finance Agreements (EFA)

• An EFA is a loan to purchase equipment as in a sales contract. It is the same as an installment loan.