Link
To Us |
| |
Leasing
Terminology... |
|
|
 |
|
 |
| |
- $1.00
Buyout
The Lessee may purchase the equipment for $1.00 at the end of
the lease term (provided all payments have been received).
- Fair
Market Value Purchase Option
At the end of the lease term, providing that all payments have
been received, the lessee has the option to:
1) return the equipment,
2) renew the lease,
3) purchase the leased equipment at its then fair market
value (not to exceed the 10%).
- Advance
Payments
One, two or three monthly payments, along with the documentation-processing
fee, are required (usually the first month's payment
and
security deposit). The number of months required varies from
program to program.
- Buyout
The lessee buys the equipment from the lessor, which terminates
the lease. The lessee then acquires the title to the
equipment.
- Certificate
of Acceptance
This dated document, signed by the lessee, acknowledge
that the leased equipment has been delivered and was properly
installed
authorizing
payment to the vendor.
- Factor
The percentage that is used to calculate the monthly payment of
the lease. To arrive at the monthly payment, the factor is multiplied
by the cost of the equipment.
- Financial
Interim and Comparative Statements
When financial statements are requested a minimum of two years
ends are required (includes most recent P&L, balance
sheet and comparative statements).
- Master
Lease
The benefit of a master lease is that the terms, conditions,
and signature (not including the payment amounts and lease term)
are
only acquired one time. This lease enables the Lessee to meet
unforeseen events, and aides in the development of long-term
purchasing
plans.
- Tax-exempt
Certificate
A certificate that includes a number issued by the taxing authority,
which indicates the reasons why the transaction is tax exempt.
- Tax
Returns
Tax returns may be requested for verification purposes (includes
all schedules).
|
|
|
|
|
