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AllSunPlus Leasing Programs
Call us at 1 866 813 6800 to discuss your options
Finance Leases have typically a fixed term
of three to seven years with a mandatory fixed price buyout that
typically ranges from $1 to 10% of equipment cost. These leases
are also known as “dollar out” leases.
Capital Leases have typically a fixed term
of three to five years, but allow the lessee to return the equipment
to the lender or to purchase it. Typically the purchase is at fair
market value, but could also be at a fixed price or capped price.
The residual value is typically estimated to be 4-20%. Actual residuals are heavily
dependant on the specific equipment.
Operating Leases carried off-balance sheet
and charged against expense, not capital budgets, have typically
a fixed term of three years or less, but may be as much as five
years. The lessee has the right to return the equipment or to purchase
it at a fair market value. Generally accepted accounting principals
typically preclude fixed price buyouts. The residual value, passed
through to the benefit of the customer, by way of lower monthly
rental rates, can be 10 to 20%. Again the actual residuals are
heavily dependant on the specific equipment.
Highly Structured Leases are typically with
customers who seek financing as a way around operating stumbling
blocks that are financial in origin, e.g.
• need to reduce MIS costs
• need to shed cost when business conditions turn down
• need to acquire equipment immediately even in the temporary
absence of capital budgets
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