Over $1 Million
Secured Loans: Terms from three to seven
years. The interest rate can be either fixed or variable. The interest rate can
be locked through a specified time period or float with a market
index. Additionally, the monthly payment or the repayment term can be
Finance Leases: Structured from three to seven years
with tax benefits of ownership for account of lessee. Purchase options may vary
from $1.00 to 20%.
Traditional: Structured from three to ten years with tax
account of lessor. Purchase option price is fair market
value (FMV) at lease termination.
Synthetics and Hybrids: Similar to traditional leases
with the addition of either a predetermined early buyout option (EBO) or a maximum dollar
percent of original cost instead of fair market value.
Sale and Leaseback:
This can allow a company to convert depreciated equipment
into working capital for future growth.
Both leases and loans can be structured as operating or
capitalized obligations consistent with
the FASB 13 guidelines for balance sheet accounting.
Financing commitments are typically negotiated prior to
equipment delivery and acceptance.