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We can customize a lease program to meet almost any need.
Lease Programs
- Upgrade Lease. By selecting a lease term that matches the useful life of the equipment, the Upgrade Lease is a good way to acquire the latest equipment. Your customers can avoid equipment obsolescence. Plus, increase your sales through repeat business.
- Rental Finance. Without affecting cash flow, Rental Finance is an easy way to build the most up-to-date rental technology. We provide financing to build your inventory. Dealers are able to create working capital and finance equipment.
- Portfolio Purchases. We can purchase your existing loans or leases. A custom program can be created to handle individual transactions or create a scheduled program.
- Recourse Programs. Recourse programs are available and can be customized to meet your specific needs. Recourse programs allow you to market your products to a larger customer base.
- Private Label/Co-Branded Programs. You can provide a complete solution to your customers and streamline financing administration through a private label or co-branded finance product. We can create a program to cover as much of the lease process as you desire. USBancorp can stay behind the scenes while your name stays in front of the customer.
Types of leases
Finance Lease
A finance lease is a full-payout noncancelable agreement. You are responsible for maintenance, taxes and insurance. The benefit of this lease type is the advantage of IRS Section 179 and expense up to the amount allowed for the year the equipment is installed. You may depreciate any excess on the depreciation schedule for that particular asset.
$1 Buyout (Lease to Own)
This lease allows
the customer to own the equipment for $1 at the end of the lease. This lease will have the
highest monthly payment. The following options are available at the end of the lease:
- Purchase the equipment for $1
- Upgrade the lease
This option is good for equipment with a long useful life. Also called a capital or finance lease and may be depreciated on the balance sheet.*
10% Purchase Upon Termination (PUT)
Under this lease type, the customer must purchase the equipment at the end of the
lease term at 10% of the original equipment cost.
- Purchase the equipment for 10% of the original cost
- Upgrade or renew the lease
Tax Lease/True Lease
A tax lease or true lease are leases for which the lessor retains ownership and you as the lessee may be allowed to claim the entire amount of the monthly investment as a tax deduction. Many rental contracts qualify as a true lease.
Fair Market Value Lease (FMV). This lease provides the
lowest monthly payment. When the term is completed, you can either purchase the equipment
for the fair market value, or return the equipment to the finance company. This lease offers
the following end of lease options:
- Purchase the equipment for the fair market value
- Return the equipment
- Upgrade or renew the lease
This is usually a good option for companies that upgrade to new equipment every few years. Also called a Tax or True lease because it usually qualifies as a tax deductible business expense.*
10% Option.
The 10% Option guarantees a 10% residual on the equipment, however, the customer has the
OPTION of purchasing the equipment for 10%. This lease offers the following end of lease options:
- Purchase the equipment for 10% of the original cost
- Return the equipment
- Upgrade or renew the lease
In most cases, the monthly payment can be written off as a business expense.*
*Consult your tax advisor for specific details.
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