IT'S THE LEASE WE CAN DO!
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Benefits of a Tax-Exempt Municipal Lease...
Title is passed to lessee
Bargain purchase option ($1.00 Buyout)
Principal and interest is separated
Bargain purchase option ($1.00 Buyout)
Principal and interest is separated
Qualifications of a Tax-Exempt Municipal Lease...
A Municipal Lease or Lease Purchase is essentially an installment sales contract. Properly structured with annual renewals a municipal lease constitutes a current expense of the municipality and does not create debt. Because the interest is exempt from federal tax, a tax-exempt lease offers the municipality a significant cost savings when compared to conventional leasing.
Municipal leases (Lease Purchase) allow a municipality to obtain necessary capital equipment while spreading the cost over several fiscal or budget periods. Installment payments allow tax dollars to be stretched over the useful life of the piece of equipment and are treated as an operating expense, not a capital expense. Budgeting restrictions can be overcome. Monthly payments are easier to get approved versus lump-sum purchase price. States, counties, cities, public schools and 501(c)(3)’s are eligible.
Municipal leases (Lease Purchase) allow a municipality to obtain necessary capital equipment while spreading the cost over several fiscal or budget periods. Installment payments allow tax dollars to be stretched over the useful life of the piece of equipment and are treated as an operating expense, not a capital expense. Budgeting restrictions can be overcome. Monthly payments are easier to get approved versus lump-sum purchase price. States, counties, cities, public schools and 501(c)(3)’s are eligible.
Municipal Leasing
Offers 100% financing including delivery and installation costs.
Flexible payment terms to match fiscal budgets
Allows public agencies to acquire the needed equipment NOW
Simplified process. Avoid an expensive bond issuance
Offers leveraged appropriations
Maintains borrowing capacity
Includes termination language for non-appropriation
Municipality holds the title, lessor holds only security interest
Flexible payment terms to match fiscal budgets
Allows public agencies to acquire the needed equipment NOW
Simplified process. Avoid an expensive bond issuance
Offers leveraged appropriations
Maintains borrowing capacity
Includes termination language for non-appropriation
Municipality holds the title, lessor holds only security interest
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