Capital Funds Leasing offers a variety of commercial equipment leasing options. One of the many advantages to using Capital Funds Leasing is our ability to provide the best lease option for your business' equipment needs. We offer the different types of leasing options:
Leasing commercial equipment with a True Lease or Tax Lease means you will not have legal ownership of equipment, but will have use of such equipment for the term defined in the lease. If the equipment you need is subject to rapid advancements in technology, such as computers, the Tax Lease/True Lease is could be the best option. Financing commercial equipment with this lease option can mean lower monthly payments and in many cases tax deductions for lease payment amounts.
The best option for short-term equipment needs! An Operating Lease is any lease that does not qualify as a Capital Lease. The Operating Lease provides you the greatest flexibility by allowing you to lease needed equipment for a shorter period than the actual (expected) life of the asset. Since the equipment is returned to the vendor while it still has a useful life, you may often benefit from additional services provided by the vendor, specifically maintenance and insurance.
Since an Operating Lease does not contain any of the provisions that would qualify it as a Capital Lease, the lease is not treated as a 'sale/purchase'. As a result, you account for it as a rental expense; therefore it is not capitalized.
With a Capital Lease, legal ownership of the equipment may ultimately be transferred to you at the end of the lease period. However, the Capital Lease is treated as a sale immediately for accounting purposes, with the equipment vendor listing it as a sale and you as a purchase at the start of the lease period. Reporting a Capital Lease as a sale/purchase at the start of the lease period allows the equipment vendor to report the value of your future payments as assets, while you can also treat the equipment as an asset (and claim depreciation) as well as deduct interest expense.
A terminal rental adjustment clause lease (TRAC Lease) combines all the advantages of leasing while retaining the option to purchase the equipment at the end of the lease term at a price set when the lease term began!
Your monthly payments on a TRAC Lease are determined by the purchase price you establish at the start of the lease period. Depending on how you want to spread out your costs, you can select a higher end-of-term purchase amount for a lower monthly payment, or keep the purchase price low with higher monthly payments. This flexibility of payment options is key in this commercial equipment leasing option and can help businesses improve and better manage cash flow
Our commitment to providing the best leasing solution, puts us above other financing companies in the industry. No matter what type of commercial equipment you plan to lease, we can provide your company with the best options available.
Apply online today or call us toll free 1-888-606-5327 to speak with one of our financing specialists at no cost with no obligation.Contact us today to learn more.