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If you’re looking to eventually own equipment but don’t have the available capital to invest in a lump sum, then a $10 Out Lease or a Fair Market Value Lease might be the right fit for you:
$10 Out. Also known as a Capital Lease or a $10 Purchase Option Lease. This is a termed contract lease that customers enter into with the intention to own at the end of the term for $10. Because of this intent, Capital Leases are sometimes referred to as Conditional Sales. From an accounting standpoint, this lease is treated as an asset on a company’s balance sheet, with tax benefits being taken in the form of depreciation.
Fair Market Value. This is also called an Operating Lease or a “true lease.” Like a $10 Out lease, it is a termed contract for a specified term. What sets it apart is the customer makes payments without real intent to own the system. The Operating Lease usually qualifies for “Off Balance Sheet” treatment, which means the payment is written off each month as an operating expense in pre-tax dollars. At the end of the term, the system can either be returned or purchased for fair market value. Operating leases have many tax benefits and typically offer the lowest monthly payment.
- Preserve your capital for other investments
- Predictable payments
- Potential tax benefits
- Eventual equipment ownership
- Complete our Information Request form
- Contact your Sales Representative
- Call us at 1 877 727-4717
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