Transaction Sizes | Types of Structures | Lease Options | End of Term Options Available | Payment Plans
End of Term Options Available
We provide end of term structures to meet your specific needs. In each case, we address the customer's cash flow consideration, operating lease qualification, and options to acquire or return the equipment. Each end of term provides its own specific advantages.
$1.00 - Transfer equipment at the end of the term to the Lessee for $1.00
Capped or Closed-Ended - End of Term purchase options from 1%-40% of the original equipment cost. This type of structure works for both capital and operating leases. The higher residual held at the end of term allows for lower payments, thus helping with cash flow . Some capped or closed-ended purchase options come with return options that in turn provide flexibility to the Lessee at the end of term. This type of end of term structure also helps a lease address FASB 13 criteria.
Balloon Payment - Some customers need a specific payment to align their cash flow with their intent to keep the equipment. The balloon payment is the perfect solution in that it includes a low monthly payment with an option to only purchase the equipment for a set amount at the end of term.
Open Ended - Offers the ability to continue the lease agreement on a month to month basis after the completion of the initial lease term. The Lessee may have projects that extend past the expected due date or may not have the replacement equipment ready at that time. For whatever the reason may be, this type of lease allows the Lessee to continue until the equipment is no longer needed.
Fair Market Value - The value of the equipment based on the sale determined at an arm's length, between a willing buyer and a willing seller. We also offer Fair Market Value options that are capped or not to be less than a specific percentage. Our Fair Market Value options may be determined by the Lessee, the Lessor or by a third party appraiser depending on the structure approved by both parties. In short, we can offer a variety of Fair Market Value options to meet your qualification needs.