How Are Equipment Leasing Contracts Created?
Equipment Leasing Contracts range in length from several months to several years. When the lessee signs the lease they are indebted to pay the equipment owner based on the terms of the lease.


Types of Leases:

·Finance/Capital Lease - lessee has the ability at the end of the lease to acquire title of the asset for an amount guaranteed and pre-determined in the lease.

·Full Payout Lease -lessee agrees to par lessor the full amount of the equipment cost plus an agreed upon return over the lease term.

·Master Lease - an open ended lease agreement whereby the lessee has the ability to add additional equipment to the lease during the term without starting a new lease.

·Sale Leaseback - all costs associated with agreement between the lessor and the lessee are paid by the lessee. This included the monthly payment, agreed return, taxes, insurance, repairs and maintenance.

·Municipal Lease " Munis" - a lease document specifically designed for a local or state government agency that leases equipment for that organization.

·Aircraft & Marine - may be written on different and/or specific lease forms designed by the lessor if the equipment will/could leave the boundaries of the U.S. and cross over into international jurisdictions.

Benefits to the Lessee

• The lessee can benefit from the sale of the leasing contract by receiving a Lump Sum of cash that will allow them to purchase additional equipment to offer for lease.
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Low down payments usually 1-2% up front.  With a bank it's 15-20%.
• The lessee has the right to deduct payments as an expense.
• Flexible payments.
• Fixed rates over entire term.
• Speed - get the needed equipment to them FAST!
• No financial hassle - for 10k-150k all that is needed is an Application, & Proforma Statement/Invoice from Approved Vendor (certifies mileage, repairs, work, rehab, etc.)
• Convserves Working Capital