First off, I apologize for the delay in updating the leasing blog. Let’s look at some other forms of equipment lease programs. We will overview deferred lease payment programs, seasonal payment / skip lease programs and pre-paid purchase option programs.
- Deferred Payment Programs:
For companies that need equipment today yet will not generate profit / revenue for a short period of time, a 60 to 90 day deferred lease structure is very attractive. The lease is structured so that the initial months have nominal or no payments. This type of lease can also be structured as a finance lease or a true lease. Usually one advance payment required, and the next payment is not due until the second (60 day) or third (90 day) month of the lease.
- Seasonal Payment or Skip Lease Programs
Especially ideal for those in agricultural industries, this lease is designed for businesses with seasonal cash flows. The lease can be tailored so that payments might be lower during the summer months and higher during the rest of the year or vice versa. School systems also benefit from this type of lease structure.
- Pre-Paid Purchase Option:
For new businesses and those with not so perfect credit, the pre-paid purchase option allows you to lower your monthly payments by pre-paying a percentage of the equipment cost. Typically, you will have the ability to purchase the equipment at lease end for $1.00.
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