TYPES

OF

FINANCING

Untitled design.png
Untitled design (1).png

Equipment Finance Agreement (EFA) is paid with interest over a period of time and the equipment is owned at the end of the term, which is generally 24 to 72 months depending on year and miles/hours on the equipment.

A Dollar Buyout Lease ($1 Buyout) allows the lessee to purchase for $1 at the end of the agreement, and potentially be able to deduct monthly lease payments.  In some cases, this structure may allow for lower monthly payments for better cash flow.  May be referred to as a $101 buyout in CA or AZ.

At the end of a Fair Market Lease, the lessee may purchase the equipment at it's fair market value, continue the lease, or perhaps turn the asset in for a newer unti should they qualify.

A TRAC Lease is similiar to a FMV i that it allows the lessee to purchase at the end of the term, but the purchase option is a predetermined amount that can be stated in the original contract.  Re-lease or return also an option if not wanting to payoff.