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End of Term Buyout on Equipment Lease
ENvision Capital offers a
variety of end of term leasing options. At ENvision Capital, our
Account Executives are extensively trained to structure leases
that fit our clients’ specific requirements. In other
words, we will find the leasing solution that is best for you,
not for us or your vendor. Here are some of the different
leasing options ENvision Capital can provide.
Fair Market Value (FMV)
This plan is particularly beneficial to those concerned with
technological obsolescence. Our Fair Market Value lease is
designed for our customers who expect the value of their
equipment to decrease quickly. This option also benefits
those companies that know in advance that they will want to
upgrade their equipment at the end of the lease. At the end of a
FMV lease, the lessee has three options: extend the term of the
lease, return the equipment, or buy it at its fair market value.
With this lease option, you generally have lower monthly
payments and you can write off 100% of your payments as an
operating expense. Once we have provided you with an explanation
of your options, we recommend you consult your accountant about
the tax treatment most beneficial for your company.
$1 Buyout
This option is best for your company if you are fairly certain
that your equipment will retain its value. Therefore, you plan
to purchase the equipment at the end of the lease. When the
lease term expires, you can simply purchase the equipment for a
$1 (or $101 depending on your state's tax law requirements).
10% Purchase Option
For those companies who want the flexibility of retaining the
option to return the equipment or purchase it at the end of
lease, you may want to cap the equipment buyout at a certain
percent of the equipment cost, in this case 10% of the equipment
cost. We can help you understand if this option is best
for you. |
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