Nearly 80% of US businesses lease finance at least one piece of equipment. With the exorbitant price of equipment, equipment leasing makes excellent sense in a variety of circumstances and is an ideal way to circumvent large cash expenditures and hefty down payments.
At North American Banking Company, our equipment leasing programs allow you to finance 100% of the purchase price. No need to come up with large down payments. Furthermore, our financing programs account for and allocate funds for soft costs like shipping, installation, and training.
Leases We Offer
Fair Market Value (FMV) Lease
A FMV lease offers a low monthly payment, is the most flexible lease structure, and may allow you to obtain tax advantages. Technically, you don’t own the equipment (think of it like renting over a fixed period of time). The equipment may not be considered an asset on your balance sheet. Depending upon your situation, up to 100% of the finance expense may be tax deductible. At the end of the lease term, you may purchase the equipment, return the equipment, or continue to pay for use of the equipment according to the terms of the original agreement.
$1 Buyout Leases
This popular lease offers the benefit of ownership with all of the advantages of a lease. You can own the equipment you have been leasing at the end of the term for $1. Additionally, the $1 Buyout Lease gives you the ability to bundle costs for hardware, software, and services while offering tax advantages.
Operating leases provide greater flexibility, allowing you to replace or update equipment more often. Without transfer of ownership, there is no risk of obsolescence. Accounting for an Operator Lease is often simpler than other types of leases. Lease payments are also tax-deductible.
The TRAC (Terminal Rental Adjustment Clause) lease benefits companies by saving upfront money along with lower monthly payments, which are tax deductible. Sales tax is on the stream of products and there are multiple end of contract options. No large down payment is required and you can obtain the equipment you need at a fixed monthly payment.
Are you interested in learning more about leasing services at North American Banking Company? Contact Joe Salvatori, VP Leasing Services at 651.766.4227 or email him.
If you are ready to apply for business leasing, please complete our application or click on the button below to begin our online application process.