Lease Options
Features
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$1 Buyout Option
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10% Purchase Option
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Fair Market Value Option
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10% Purchase Upon Termination Option
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End of term options
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Purchase for $1
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Purchase at a percent of original price, renew lease,* or return equipment
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Purchase at Fair Market Value, renew lease,* or return equipment
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Purchase at 10% of original price, upgrade or renew equipment
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Can be structured to fit cash flow
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Yes
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Yes
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Yes
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Yes
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Equipment obsolescence protection
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No
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Yes
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Yes
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Yes
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Inclusion of "soft costs"
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Yes
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Yes
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Yes
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Yes
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Relative Cost of payments
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Low
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Lower
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Lowest
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Lower
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Tax advantages of ownership available to lessee
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Yes
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TBD by Equipment Type
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No
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Yes
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Allows upgrading/trade-ups
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Yes
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Yes
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Yes
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Yes
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Down payment required
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No
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No
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No
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No
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Capitalized on balance sheet, generally
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Yes
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TBD by Equipment Type
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No
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Yes
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Allows Co-Terminous Addenda (CTA)
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Yes
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Yes
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Yes
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Yes
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Available terms*
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12 to 60 months
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12 to 60 months
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12 to 60 months
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12 to 60 months
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* Term, renewal options, and approval of CTA may be limited by credit quality and equipment type.
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Customer Benefits
· 100% financing with room for upgrades including add-ons, warranties and delivery charges.
· No rate penalties when financing pre-owned vehicles.
· One-page applications (up to $150K).
· Credit decisions in as little as four business hours (up to $50K)
· Streamlined, easy-to-read documentation.
· Competitive rates.
· No mileage restrictions with any of our finance programs.
· Financing at the business-level with no impact to the lease signer’s personal credit.
· Customer service support is available post-closing with representatives available:
7:00 A.M. – 6:00 P.M. CST, M-TH
7:00 A.M. – 5:00 P.M. CST, F
· Buy-out information is also available upon request.
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Terminal Rental Agreement Clause Lease (TRAC)
· Dealer and customer determine the residual amount based on customers vehicle usage requirements and payment needs.
· Open ended lease where customer has the responsibility of the “residual value” of the vehicle at the end of thee term.
· At the end of the lease, the lessee has three options: purchase, continue to rent, or return the vehicle.
· If the vehicle sells for more than the residual value, the customer pockets the difference. If it sells for less, the customer pays the difference.
| Benefits of TRAC Lease
· Lower monthly payments because you pay only for the use of the vehicle during the lease term.
· More working capital due to no down payment requirements.
· Fixed and variable payment structures.
· Potential tax or accounting advantages, such as off-balance sheet treatment and expensing of lease payment. (Contact your tax advisor)
· Fewer administrative burdens due to combined multiple unit billing statements.
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Credit Criteria – Business Equipment Financing
Up to $50,000 $50,001 to $150,000 $150,001+
2+ years in business All criteria listed for up to All criteria listed for
$50,000 in previous column $50,001 to $150,000 in
previous column
Clean credit bureau on 4+ years in business 2 years financial statements
all owners (if required) (business and personal) and
640+ FICO interim statements
Clean partial D&B Low 5 figure avg. checking
(2+ yrs with no OD’s or NSF’s)
Partial guarantees from 3 clean major trade
all owners (if required) references, dating 2+ yrs
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