Lease Programs Available

$1 Out            

Usually called a capital lease.  The end of term residual is fixed at $1.00, which
allows the customer to depreciate the equipment cost for tax purposes.   The
structure and tax benefits are very similar to that of a finance deal, except that with
the $1 Out Lease the borrower is usually getting 100% financing of the equipment
cost, shipping, dealer costs, and any applicable taxes.  


10% Residual          

This is a lease with a fixed residual purchase option.  This is similar to the $1 Out
Lease except that 10% of the equipment cost is not due until the end of the term.  
An advantage of this type of lease is the lower monthly payment which increases
cash flow.  The customer can depreciate the equipment cost for tax purposes, or
possibly write-off monthly payments as a rental expense for tax purposes.*


20% Residual        

This is a lease with a fixed residual purchase option.  Twenty-percent of the
equipment cost is due at the end of the term, at which time the customer can pay
the residual amount in full, extend the term (credit review and reapproval
required), or sell the equipment and keep the difference between the selling price
and the residual amount that is due.  The customer can either depreciate the
equipment or qualify this as an operating lease*.  The amount borrowed does not
have to be shown on your balance sheet and is not shown as long-term debt.  
Monthly savings & cash flow is a great benefit with a 20% Residual lease
compared to the $1.00 out or 10% Residual lease.


TRAC Lease

The TRAC (Terminal Rental Adjustment Clause) Lease is a true lease used for
titled & motorized equipment, including any attachments.  The customer has the
option of returning the equipment at the end of the term; purchasing the equipment
for the Fair Market Value that is determined by the customer and the bank;
extending the term (credit review and reapproval required); or selling the
equipment and keeping the difference between the selling price and the payoff
amount.


EFA            

The EFA or Equipment Finance Agreement allows the customer to finance
equipment with all of the benefits and responsibilities of ownership.  EFA's  are  
similar to a lease finance, where minimal upfront payment is required and 100%
of the equipment cost, shipping, dealer costs, and any applicable taxes are covered
in the deal.  


Master Lease      

Customers that would like to purchase several pieces of equipment over a period  
time can apply for a Master Lease Agreement.  A customer can apply for a larger
approval amount and use that for multiple take-downs (transactions) to cover
individual pieces of equipment over time.  Each purchase can be tied into one
payment schedule.


* Speak with your accountant