Get the right lease for your business
TIP Capital offers a wide variety of equipment finance options, from traditional operating lease financing to structures that transfer ownership at the end of the lease. One constant is our ability to understand your equipment finance requirements and design a program to fit your needs.
TIP Capital provides traditional tax-exempt financing, true lease and conditional sales to commercial customers, state and local government agencies, municipalities and not-for-profit 501c(3) organizations.
Benefits of Leasing
An equipment lease is a transaction by which the owner (a “lessor”) of the equipment agrees to permit another party (a “lessee”) to use it for a defined period and in consideration for specific payments. Lease terms vary depending on the equipment type and use and can be structured with monthly, quarterly, semi-annual or annual payment scheduling.
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Traditional Operating Lease
In a traditional operating lease the Lessor makes a significant investment in the equipment, thereby assuming the risk of obsolescence, which reduces the lease payments that the Lessee is required to make. Equipment under an Operating Lease need not be shown on the balance sheet of the Lessee.
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Finance Lease Structure
A finance lease generally has a term in excess of 36 months, and is usually structured with fixed price purchase options for the equipment at the end of the lease. Such a lease must be shown as an asset on the balance sheet of the lessee and be depreciated or capitalized over the term of the lease.
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Capital Lease Structure
A capital lease is usually structured with a required nominal end of lease payment. At the end of the term of the lease, the title to the equipment is transferred to the lessee upon completion of the lease obligations. Such a lease must be shown as an asset on the balance sheet of the lessee and be depreciated or capitalized over the term of the lease.
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Purchase/Leaseback
A purchase/leaseback transaction provides lease financing for equipment that the customer has already taken title to. The lessor purchases the equipment from the customer for a specified price, generally the current fair market value of the equipment, and leases it back to the customer at a mutually agreeable rate and lease term.