Financing products

Leasing Options

Capital Lease - ownership transfer at the end of the term. Low to no down payment.

TRAC Lease - Specially structured for vehicles. You decide what the balloon payment is, thus matching the payment stream to your business cash flow.

True/Operating Lease - results in lease payments being recorded as operating expense, and depending on your lender’s covenant definitions, may have less impact on certain bank covenant calculations than traditional debt financing.

Equipment Sale-leaseback - The sale of an asset (business equipment) for cash. The asset remains on the seller's property with a contract to lease it back from the source purchasing it. The seller retains ownership of the asset at the term-end.

Equipment Finance Agreement (EFA) - debtor owns the equipment and the creditor has a security interest.

Always consult with your tax advisor for your particular situation.

Capital lease

CAPITAL LEASE

A Capital Lease (also known as a Finance Lease) is ideal for businesses that want to use equipment now and own it later. It works much like a loan, allowing you to spread payments over time while gaining the benefits of equipment ownership.

How It Works

With a Capital Lease, the equipment is recorded as an asset on your balance sheet, along with the lease obligation. At the end of the term, you may own the equipment or have the option to purchase it for a nominal amount, depending on the lease structure.

Benefits of a Capital Lease

Low upfront cost – often less cash required than a traditional bank loan
Preserve working capital – keep cash available for operations and growth
Ownership benefits – use the equipment while building equity
Potential tax advantages – you may be able to depreciate the equipment and deduct interest expense (consult your tax advisor)
Fixed payments – predictable monthly budgeting

Best For

Businesses that plan to keep equipment long-term and want a cost-effective path to ownership.

Common Uses

Construction equipment, medical devices, manufacturing machinery, office technology, vehicles, and other essential business equipment.

trac lease

TRAC LEASE (Commercial Vehicles)

A TRAC (Terminal Rental Adjustment Clause) lease is a modified Open End Lease limited to VIN numbered motor vehicles and trailers used at least 50% of the time for business purposes. It enables the customer to set the residual value of the vehicle at the beginning of the lease, which is used to determine monthly payments.

Higher residual amounts = lower monthly payments = higher purchase options
Lower residual amounts = higher monthly payments = lower purchase options

TRAC leases have several options at the end of the term:

Purchase the vehicle for the residual value. The lessee receives an adjustment, or cash rebate, if the actual residual value at the end of the term is higher than what was chosen at the beginning of the lease. If it is lower, lessee will pay the difference.
Trade-in the vehicle or equipment to cover the remaining amount due
Return the vehicle to a designated location for disposal and settlement

Let us help you determine your best option and assist you with future leasing needs for your business.

Why a TRAC Lease?

For eligible items of transportation equipment, ELS and the lessee are able to establish a pre-determined end-of-term equipment value. A TRAC Lease is a True Lease with a Terminal Rental Adjustment Clause.
TRAC provisions can benefit the lessee in two ways.

First, they allow the lessee to share in the residual sales value of the vehicle.
Second, because the lessee effectively guarantees the vehicle’s residual value, the rentals to be paid during the lease term may be lower than otherwise available.

Operating lease

OPERATING LEASE (FASB Lease)

How an Operating Lease Works

With an operating lease, your business makes scheduled lease payments over the agreed term in exchange for the use of the equipment. At the end of the lease, you may have one or more options depending on the agreement:

Purchase the equipment at fair market value or another agreed purchase option
Upgrade to newer equipment by entering into a new lease
Extend the lease term if available
Return the equipment subject to lease terms and return conditions

Why Choose an Operating Lease?

Preserve Cash Flow

Leasing can reduce the upfront cash required compared with purchasing equipment outright. Low upfront costs, standard documentation fees at closing, help you preserve working capital for operations, growth, and other priorities.

Access Newer Technology

For businesses that rely on current technology or specialized equipment, leasing can make it easier to refresh equipment on a regular cycle rather than owning aging assets.

Flexible End-of-Term Options

Depending on your lease agreement, you may be able to purchase, upgrade, extend, or return the equipment at lease maturity.

Protect Existing Credit Capacity

Leasing may allow businesses to acquire needed equipment without using available bank lines or cash reserves that could be used elsewhere.

Equipment-Focused Financing

Lease financing is typically secured primarily by the equipment being financed. Filing requirements and collateral terms vary by transaction.

Potential Tax Benefits

Lease payments may be deductible as a business expense in some circumstances. Tax treatment depends on your company’s structure and applicable tax law, so consult your tax advisor for guidance.

Is an Operating Lease Right for Your Business?

An operating lease may be a strong fit for companies that:

Need equipment without a large upfront purchase
Prefer predictable monthly payments
Replace equipment regularly
Want flexibility at the end of the term
Prefer to preserve capital and borrowing capacity

Sale / leaseback

SALE LEASEBACK

Equipment sale leaseback is the sale of an asset (business equipment) for cash. The asset remains on the seller's property with a contract to lease it back from the source purchasing it. The seller retains ownership of the asset at the term end.

What equipment qualifies?

From office to warehouse, any equipment that is owned outright and is involved with the daily operation of the business should qualify for sale and leaseback financing. However, equipment age and industry restrictions may apply.

Why a Sale Leaseback?

Get up to 70% of the original purchase price on equipment you own.
The equipment stays on your property for your use.
You can write off 100% of the monthly payments.
No restrictions on how the money is used.
Take idle equity out of equipment and use it for working capital.
No other collateral ... no personal assets and no other business assets.
Your lease payments do not interfere with your credit lines at the bank