Lease Types Provided

​

​

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 lease term. This is especially helpful with equipment that you would like to upgrade every few years.

​

An operating lease is also useful for the above benefits, but, when the lessee wishes to ultimately own the equipment. At lease term the lessee has the residual option to purchase the equipment or renew the lease.

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. Typically the capital lease is for the purchase of equipment with slightly reduced payments than to finance; and, has a limited residual value for the option to purchase. 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, are entitled to tax exempt leasing. These hospitals are governmental entities and lenders do not pay taxes on the income derived from the lease. This results in lower interest rates to the Lessee.