Lease Programs

$1.00 BUYOUT

A $1.00 Buyout lease is: The use of an asset for a length of time or term of the lease. When the lease period has expired the Lessee can purchase that asset for a dollar.

This type of lease would be used if you wish to own the item at the end of the lease term, but you do not have to put any money down on the asset as would have to if you did a traditional bank finance. A bank would probably would require a 10-20% down payment.

FAIR MARKET VALUE LEASE (True Lease)

This plan in particularly beneficial to those wanting to have both a small security deposit and a relatively low monthly payment. A Fair Market Value Lease allows part of the cost to be deferred to the end of the lease, when a decision to retain or to upgrade the equipment can be made. At the end of the lease term, there are usually three options to choose from.

1. Return the equipment

2. Extend the lease term

3. Buy the equipment at Fair Market Value. Generally is about 10% to 20% of the original lease amount.

At lease end, Lessee can buy the asset at 10% of the original equipment cost or return the asset. Lessee is usually offered the option of an extended lease.

SALE LEASEBACK

An arrangement whereby a company sells fixed, currently owned, for cash to a lessor and leases the same from the lessor. Converts a fixed asset to cash. Selling price can be appraised value or book value, acceptable to the lessor. Book value may be best for the lessee to eliminate taxes.

This type of "lease" creates another source of capital for a business owner. LEASE ONE will pay cash for an owned asset. This can be used as a safety net for a business if cash flow unexpectly decreases. A Sales Leaseback is treated the same as a lease, the bank takes ownership of the equipment and the customer now has a monthly payment. This is very similar to refinancing a home and pulling out the cash you need, but the equity in the asset must be 100%.

The Sales Leaseback is one of the most underutilized tools in the market, it offers significant advantages for todays business owner.

Sale Leaseback Financing

Business Loans & Unsecured Lines of Credit

Questions?

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