LEASING PROGRAMS

TYPICAL TYPES OF LEASES

$1.00 Purchase Option-Lessee can purchase the equipment at the end of the lease for $1.00.

For those who are fairly certain they wish to purchase the equipment at the end of the lease term, this is the recommended purchase option. At the end of the lease term, the equipment is simply purchased for $1.00.This type of lease is the most popular.

Fair Market Value Purchase Option (FMV)- Lessee can purchase the equipment at the end of the lease for the Fair Market Value.

For those concerned about obsolescence, this plan offers the most options both during and at the end of the lease. In addition, this plan is particularly beneficial to those wanting to have both a small security deposit and a relatively low monthly payment. At the end of the lease term, the lessee has the option to extend the term of the lease, return the equipment or buy it at its fair market value. A Fair Market Value lease allows the most cost to be deferred to the end of the lease, when a decision to retain or upgrade the equipment can be made.

10% Purchase Option- Lessee can purchase the equipment at the end of the lease for ten percent of the original cost of the equipment.

This program gives you most of the same basic features of a Fair Market Value (FMV) Lease, but with a fixed 10% Purchase Option at the end of the lease.

Customized Lease Programs

Step Lease: The step lease program allows the lease payments to either increase (Step-Up) or decrease (Step-Down) over the term of the lease to better meet a customer’s cash flow needs.

Skipped Payment Lease: This type of lease agreement requires the customer to make payments only during certain months or periods each year. Skipped-payment leases are structured to meet seasonal needs or other cash constraints. 

Deferred Payment Lease: A Deferred Payment Lease is a lease that contains a 30, 60 or 90-day deferment of the first monthly payment. Deferred payments give a business the opportunity to establish a time period after the sale for learning how to operate new equipment efficiently and profitably without having to make monthly lease payments.

90 Days Same as Cash Lease: Contract allows a customer to acquire new equipment today, but take as long as 90 days to decide whether to lease or purchase the equipment.

Semi-Annual Payment Lease: The customer usually makes one semi-annual payment in advance in order to initiate the lease process.

Quarterly Payment Lease: The customer usually makes one quarterly payment in advance in order to initiate the lease process.

Master Lease: A master lease agreement is structured as a line of credit that allows a customer to add equipment to a lease (up to a maximum amount for a certain period of time) under the same terms and conditions, without having to renegotiate the contract. It allows for easy add-ons of equipment for the duration of the lease term. Payments are adjusted to meet the addition.

HOW THE EQUIPMENT LEASE PROCESS WORKS

(Equipment costs under $50,000)

(1)      Fax in or e-mail a completed application.

 (2)      Upon approval, the lease agreement will be sent to Lessee for signature.

 (3)      A purchase order, if needed, is released to the Dealer.

 (4)      Equipment/software is installed by the Dealer.

(5)      A check is released to the dealer by AmeriTel Financial Services, upon satisfactory verbal acceptance of  equipment by Lessee.

NOTE

Lease rates are not expressed in interest (Annual Percentage Rate) terms but as Lease Rate Factors. A 60-month, $1.00 buy out Lease Rate Factor may be .0231. You multiply the lease rate factor by the equipment cost to determine the monthly payment. Example: A $25,000 lease would carry monthly payments of $577.50 ($25,000 X .0231)