Understanding your lease options helps you choose the best financing structure for your business goals
Own at the End
A capital lease functions like a loan, allowing you to own the equipment at the end of the lease term. This option provides ownership benefits while preserving capital during the lease period.
Best For:
Businesses wanting to own equipment long-term while spreading costs
Terminal Rental Adjustment Clause
TRAC leases are specifically designed for vehicles used in business operations. You can purchase the vehicle at lease end for a predetermined price, with potential adjustments based on mileage and condition.
Best For:
Trucking companies and businesses with commercial vehicle fleets
Fair Market Value
FMV leases allow you to use equipment for a set period with the flexibility to return it, purchase it at fair market value, or upgrade to newer equipment at lease end. Lower monthly payments compared to capital leases.
Best For:
Businesses wanting flexibility and the latest equipment technology
Leases typically offer lower monthly payments compared to equipment loans
Lease payments may be fully deductible as a business expense
Upgrade to newer equipment at lease end without hassle
Common questions about equipment leases
Capital leases are ideal if you want to own equipment long-term. FMV leases offer lower payments and flexibility if you upgrade frequently. TRAC leases are specifically designed for commercial vehicles and trucking operations. Our team helps you choose based on your goals and cash flow needs.
Yes! For operating leases (FMV, TRAC), payments are typically 100% tax deductible as a business expense. Capital leases allow you to claim depreciation and interest deductions. Consult your tax advisor for specific guidance.
Capital Lease: You own the equipment for a nominal fee ($1 buyout). FMV Lease: You can return it, purchase at fair market value, or upgrade. TRAC Lease: You can purchase at the predetermined price, return it, or extend the lease.
With FMV leases, upgrading is straightforward at lease end. For capital and TRAC leases, you can refinance or trade in the equipment. We help structure deals that make sense for your business cycle.
Lease terms typically range from 24 to 84 months depending on equipment type and useful life. We customize terms to match your budget and business needs.
Most leases have early termination fees to cover the lessor's costs. However, we can structure flexible terms and discuss options if your business needs change. Contact us to review specific lease agreements.
Have questions? Need a custom quote? Our team is ready to help you find the perfect financing solution for your business.
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