Types of Leases

Newcap's expert leasing advisors will work with you to create a financing plan that meets your needs based on growth, profit objectives and of course budget. The following are a few of the most popular lease structures available to you.

$10 Buyback Lease

This lease allows a fixed payment ($10) at the end of the term at which point the ownership of the equipment is transferred to you. This option is best suited if you want to own the equipment at the end of the term.

 

10% Buyback Lease

Same as the $10 buyback option except the buyout amount at the end of the term is equal to 10% of the equipment cost, allowing for smaller payments throughout the term.

 

Fair Market Value Lease

With a fair market value lease, you defer a portion of the equipments purchase cost to the end of the lease, at which point you have the option of purchasing the equipment for fair market value, returning the equipment, or keep the lease going on a month-to-month basis.

 

Sale and Leaseback

A sale and leaseback allows you to free up capital using equipment you already own. The leasing company buys your equipment for cash and in turn, rents the equipment back to you. This allows you to free up capital while still retaining possession of the equipment, along with tax benefits such as deduction of rental payments, rather than depreciation on the asset.

 

Step-up or Step-down Lease

This lease allows you to match your lease payments with the revenue streams of your business. It allows you to arrange payments to either increase or decrease throughout the term of the lease.

 

Seasonal, Quarterly, Semi-Annual, or Annual Lease

These leases give you the freedom to make larger payments during peak seasons and lower payments during slow seasons.

 

 

If you don’t see a lease that fits your business’ model, contact one of our representatives to discuss further options.