Whats FMV?
On true, tax type leases, the purchase price is negotiated between you and the leasing company. Sometimes an independent appraiser can be called in to help establish a “Fair MarketValue”. Frequently this is pre-estimated at 10% of the equipment’s original price. Lessees who keep in mind that the leasing company doesn’t want to end up with the equipment at the end of the lease generally are able to negotiate the most favorable purchase options. 2 Things Your Banker May Not Tell You! Leasing keeps your credit line available It comes as an untimely surprise to many business people when the available cash they’ve been counting on through their bank credit line is reduced by the amount of equipment leases they’ve done with the bank’s leasing department. Because commercial credit and leasing are frequently different departments within the bank, it’s easy to assume that the commitments made by each are separate and cumulative. That’s rarely the case. That’s also increasingly why successful mo
