While many leasing companies may use the same name to describe a lease,
the actual terms and conditions written in their contracts often vary.
At Access Equipment Leasing, we always recommend you carefully review
any leasing documents and ask your leasing company or Access Equipment
Leasing to explain anything that is unclear.
True Lease or Operating Lease
Best For: Equipment that will rapidly depreciate
or become obsolete in a short period of time - i.e. some forms of computer
How It Works: In a true or operating lease, the leasing company
retains ownership of the equipment during the lease. True or operating
leases typically have no predetermined buyouts - customers usually classify
these payments as an operating expense.
Lower payments and typically the most tax-friendly form of leasing, Additionally,
true or operating leases offer three choices at the end of your lease:
· return the equipment to the
· purchase the equipment at its fair market value or option
· extend your lease term.
Finance Lease or Capital Lease
Best For: If you would prefer to own the equipment
when the lease agreement ends.
How It Works: The full purchase price, plus interest, is spread
over the length of the lease agreement.
Benefits: At the end of the lease, you own the equipment for a
minimal payment, usually $1.00 or a small percentage of the original purchase
Best For: Seasonal businesses, agricultural
companies, recreational services firms, and other organizations which
might require a more flexible payment schedule due to seasonal business
How It Works: You specify the months when you would prefer not
to make payments.
Benefits: Flexible, in that it can be adjusted to irregular cash
Best For: Customers who have purchased their
equipment, but now have decided that leasing would be more beneficial.
Sale-leaseback also allows companies to raise cash for other investments
or cash flow purposes.
How It Works: The business that has already purchased equipment
sells it to a leasing company, which then takes ownership of the equipment
and leases it back to the business. Access Equipment Leasing requires
that the equipment be purchased within 90 days.
Benefits: The sale-leaseback allows you to put money back into
your business or into investments that appreciate rather than depreciate.
60 or 90-Day Deferred Lease
Best For: Businesses that need equipment for
operation and development that will not immediately generate revenue.
How It Works: A 60 or 90-day deferred lease can be structured as
a finance lease or a true lease. With this form of lease, there is usually
no advance payment required, and the first payment is not due for 60 or
90 days after the lease begins.
Benefits: The equipment you need can be acquired with little to
no money up front and no payments for 2-3 months.
Best For: If your leasing requirements will
likely be expanding over time.
How It Works: Separate lease schedules are created to accommodate
the addition of equipment over a period of time of your specification.
The master lease governs the basic terms and conditions. Each schedule
may include different end of term options and different lease lengths
but all will come under one "Master Lease."
Benefits: Acquiring additional equipment is made more convenient.
Best For: Local and state government organizations
that wish to acquire equipment.
How It Works: The tax structures and details of municipal leases
will vary considerably from standard business leases. Seek the advice
of your financial advisor to better understand your municipal lease options.
Benefits: Municipal leases are designed specifically for local
and state government organizations.
Step Up Lease
Best For: Businesses whose financed equipment
will allow more profitability over a period of time.
How It Works:Payments increase according to a regular schedule
over the life of the lease.
Benefits: Payments can be structured to match current cash flow.
Access Equipment Leasing
3972 Barranca Pkwy
Call Toll Free: 1-866-546-8258