• LEASE - STATED PURCHASE OPTION (SPO)
  

  A lease, in general terms, is a rental agreement where the lender (lessor) owns the equipment and allows the customer (lessee) to use the equipment.

  SPO is a type of lease that allows the customer to know when they sign the lease agreement what the equipment purchase option is.

  The customer still has one of the following options to return the equipment: 1) Extend the lease for a specified term, 2) Purchase the equipment at the stated purchase option, OR 3) return it to lessor (finance company).

  A SPO lease typically offers the customer a lower payment than an installment contract.

  Leases are ideal for customers who are concerned with managing cash flow, equipment obsolescence and seek equipment return options at the end of the contract.

  
  
  
• LEASE - FAIR MARKET VALUE (FMV)
  

  A lease, in general terms, is a rental agreement where the lender (lessor) owns the equipment and allows the customer (lessee) to use the equipment.

  FMV is a type of lease that allows the customer to purchase the equipment at the end of the lease based on current market value.

  The customer has one of the following options to return the equipment: 1) Extend the lease for a specified term, 2) Purchase the equipment at the market price, OR 3) return it to lessor (finance company).

  A FMV lease typically offers the customer the lowest payment.

  Leases are ideal for customers who are concerned with managing cash flow, equipment obsolescence, seek equipment return options at the end of the contract, and desire to expense the full lease payment.

  
  
  
• LEASE - MUNICIPAL (MUNI)
  

  Municipal Leasing (also known as tax exempt lease purchase financing) is available to State and Local Governments (SLG’s), eligible Special Purpose Districts, and non-profit organizations (subject to certain limitations). It is a financing arrangement under which the customer obtains the use and ownership of an asset by making periodic payments of principal and interest over a pre-determined period.

  These contracts are structured to be very cost competitive for the tax-exempt municipal customer. A fixed payment schedule enables the user to manage their budget and match payments with the useful life of the equipment they are purchasing. Municipal leases function as "ownership leases" with a $1 buyout when the contract reaches its full term.

  Muni leases are ideal for governmental agencies to best use their cash resources for other purposes and still purchase the equipment they need for their operations today.

  
  
  
• INSTALLMENT CONTRACT (RETAIL)
  

  An installment contract enables the buyer to take possession of the property immediately, but will not receive the equipment title until a series of payments (installments) have been made to the finance company. Installment contracts are very popular in the automobile, equipment, and home mortgage markets.

  Installment contract payments are determined by a rate (APR) and term. The rate can be a fixed or variable rate. Fixed rates are set up-front and known by the customer. Variable rates fluctuate throughout the life of the contract and are usually based on the changes in Prime rate. The payment frequency of a contract can be set up to be monthly, quarterly, semi-annual, or annual.

  Installment contracts benefit business customers by being able to depreciate the equipment on their taxes over a period of time. There are also many low rate competitive programs available in most markets. However, many times, a lower payment can be achieved with a lease.

  
  
  

Indicate if you would like to include physical damage insurance on the equipment. If Insurance is not checked, you will not be able to enter a State.

Choose a state where the equipment will be used in. If Insurance is not checked, you will not be able to enter a State.

General category of equipment that you want to calculate a payment on.

The classification of how you are using the equipment.

Choose a category that describes the current condition of the equipment.

Purchase price of the equipment.

A partial payment made at the time of purchase, with the balance to be paid on the finance contract.

The value amount of a used equipment item, using the proceeds as partial payment on the new equipment purchase.

Length of time of the finance contract.

Choose how often you want to make payments.

The rate (APR) expressed in a percentage that you want to finance the equipment. Enter 0 to auto fill the rate with the most current rate for the equipment selected.

This information is not offered as accounting, tax or legal advice, but rather to allow the customer to consider some financing options. The customer should always consult with a qualified accounting, tax and legal advisor before proceeding with any option.