Equipment Leasing Options

Your business is unique and your financing options should be too.

TCS Equipment Finance offers several equipment leasing options to ensure you will find the right one for your business.

First Amendment Lease

This structure allows for one or more purchase options through the lease term or required lease extensions if no purchase is exercised. This structure can provide your business with low lease payments and potential Operating Lease accounting treatment while reducing residual uncertainty.

Dollar Out

An equipment financing agreement that is a full-payout, non-cancelable agreement where the Lessee will purchase the leased property at the end of the lease for $1.00. The lease term typically approximates the useful economic life of the leased property. The Lessee will be the owner of the property for tax purposes and will be required to maintain and insure the leased property.

P.U.T. (Purchase Upon Termination)

A non-cancelable, full-payout equipment financing agreement in which the Lessee agrees to purchase all the leased property for a predetermined price at the end of the lease. P.U.T. values typically range from 10% to 20% depending upon term and the estimated leased property value. This structure is typically used where the Lessee wants to keep the tax benefits of ownership, but also wants a low payment.

Tax Lease

A lease where the Lessor will keep all tax benefits of ownership. Because TCS picks up the tax benefits, we can pass savings to you in the form of lower payments. The lease can then be structured as an operating or capital lease depending on your needs.

Non-Tax Lease

Lessee receives all benefits of tax ownership. Almost all Equipment Financing Agreements (capital leases) are structured this way. One exception is a Synthetic Lease, where the lease is structured as a non-tax lease for tax purposes, but structured as an operating lease (FASB 13 compliant) for accounting purposes. This is an ideal structure if your company would like to expense the lease payments as rent for accounting purposes, yet maintain the associated tax depreciation benefits of ownership.

FMV / Modified FMV

A non-cancelable lease for a fixed term. At the end of the lease, the Lessee will have options to purchase the property for the fair market value (FMV) of the property, extend the lease or return the property. Modifications can be made to this structure to help reduce your payments while protecting TCS’ investment in the lease.
Give us a call today at (385) 645-8800, so we can work together to find the right lease option for your business and get you the equipment you need within your budget.