OPERATING LEASE: This type of lease offers off balance sheet financing, increases cash flow, avoids the risk of obsolescence, and avoids capital outlays for depreciating equipment. Usually, it is used for larger transactions where the company wants to lease the equipment for a certain amount of time and has no obligation to purchase the equipment at the end of the lease. This is especially helpful with equipment that you would like to upgrade every few years.

An operating lease is also helpful for the above mentioned cash flow and balance sheet objectives with the goal of ownership at lease termination in mind. The equipment can be purchased at termination resulting in a slightly overall cost but only after five years of savings.

CAPITAL LEASE: This type of lease offers lower monthly rates than financing and increases cash flow, avoids the risk of obsolescence, and avoids capital outlays for depreciating equipment. Usually, it is used for transactions where the company wants to retain ownership of the equipment. This is especially helpful with fixed equipment.

FINANCE LEASE: This type of lease offers an additional outside source of financing, eliminates further exposure to current banking relationships, eliminates compensating balances and avoids capital outlays for depreciating equipment. It is used for all types transactions.

TAX EXEMPT FINANCING:  County/Parrish owned entities, or special taxing Districts which are, in our business, typically hospitals are entitled to tax exempt leasing. These hospitals are governmental entities and lenders do not need to pay taxes on the income derived from the lease. This results in lower interest rates to the Lessee.