What Kinds Of Leases Are There?
Equipment leases can be written for a variety of terms but typically range from 12 to 60 months. The most popular term is 36 months. Most leases are monthly but quarterly and annual payment leases are also done. Also available are step payments, wherein the lease payments start out low and increase each year; delayed payments, wherein the equipment can be installed and used for several months before the lease payments begin; seasonal payments, wherein the payment schedule can be set to match the seasonal cash flow of the business; and a variety of other customized terms. All of the above leases will fall into one of these broad categories: True leases Sometimes called “tax” or “FMV” leases, these are designed to meet IRS tax guideline definitions of a lease and may offer you the fastest way to “write-off” the use of new equipment. Leased equipment may be re-leased, purchased, returned or traded in at the end of the lease. Capital leases Frequently called “$1-Buy-Out” leases, these tran
Equipment leases can be written for a variety of terms but typically range from 12 to 60 months. The most popular term is 36 months. Most leases are monthly but quarterly and annual payment leases are also done. Also available are step payments, wherein the lease payments start out low and increase each year; delayed payments, wherein the equipment can be installed and used for several months before the lease payments begin; seasonal payments, wherein the payment schedule can be set to match the seasonal cash flow of the business; and a variety of other customized terms. All of the above leases will fall into one of these broad categories: True leases Sometimes called “tax” or “FMV” leases, these are designed to meet IRS tax guideline definitions of a lease and may offer you the fastest way to “write-off” the use of new equipment. Leased equipment may be re-leased, purchased, returned or traded in at the end of the lease. Abandonment leases Frequently called “$1-Buy-Out” leases, these
