$1.00 Buyout (Capital Lease):
The use of an asset for the term of the lease. When the lease term 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 want or have the funds to make a down payment.
10% Purchase Option (Capital Lease):
The use of an asset for the term of the lease. When the lease term has expired, the Lessee can purchase that asset for 10% of the equipment cost. 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 want or have the funds to make a down payment. This option also helps decrease the amount of the monthly payments when compared with a $1.00 Buyout Lease.
Fair Market Value (FMV):
An FMV lease is useful for entities that wish to lower their monthly payments and are not sure if they want to own the equipment at the end of the term. This type of lease gives the lessee 3 options at the end of the lease term:
1.Return the equipment to the lessor 2.Pay fair market value for the equipment 3.Renew the lease for an extended period of time
An operating lease is usually used to get equipment on a short-term basis. This type of lease is beneficial for businesses who want to keep their leases out of their financial statements. With an operating lease, only the right to use the property is transferred and not the actual ownership of the asset. The lessee is only required to record the operating expense of the equipment and it does not affect the balance sheet. If any one of the following criterion are met, the lease cannot be recorded as an operating lease:
- The length of the lease exceeds 75% of the life of the asset
- Ownership is transferred at the end of the lease
- There is a purchase option, when the lease term ends, for a bargain price
- The lease payment values, at the proper discount rate, are greater than 90% of the fair market value
Early Buyout Option (EBO):
An early buyout option lease applies to FMV leases and gives the lessee an option to buy the equipment for a fixed amount at a certain point in time. The benefit of this type of lease is that the lessee may wish to pay off the equipment earlier when capital becomes available instead of incurring the future interest expense that is associated with the lease. The lessee also has the benefit of knowing exactly what the buyout price will be opposed to a normal FMV lease where the buyout will be fair market value at the end of the term and is not determinable in advance.
Equipment Finance Agreement (EFA):
An equipment finance agreement is an alternative financing option to traditional lease agreements. Equipment finance agreements are generally more flexible than lease agreements. At the end of the equipment finance agreement, you have no further obligation to the lessor There are no purchase buy options or large down payments required.
CPR Finance & Associates is making a name for itself in the equipment leasing market. By hiring a well established team of leaders to run an elite group of vendor programs, CPR Finance is looking to lead the way and step in where so many lenders have fallen short.
Equipment leasing focuses on three different industries that encompass a number of different equipment verticals: medical, technology, and industrial. CPR Finance is able to accommodate leases as small as $3,000 and financing in excess of $10,000,000. Because we are not a bank, we have the ability to offer a vast number of products that are not typically available, we provide faster turn-around times being a very lean organization, and are dedicated solely to equipment finance opposed to it being just another division of an entity where the expertise may not be available.
- Transportation (Trucks & Trailers)
- Fork and Scissor Lifts (New & Used)
Furniture Fixtures & Equipment
Examples of Equipment We Finance: