leasing options
All About Leasing:
A lease is simply an agreement by one party (lessee) to pay a rent for a specified amount of time in exchange for the use of an owner's (lessor) property. The lessee does not own the property during the term of the lease.
Who Leases:
80% of American business and 70% of the Fortune 1000 companies lease equipment, representing 30% of all capital investment in equipment, or about $225 billion dollars worth of equipment in the year 2000.
Why Lease:
"If an asset appreciates, buy it; if it depreciates, lease it."
Conserve Credit
Conserve Credit Lines
Significant Tax Benefits
Hedge Against Inflation and Technology
No Down Payments and Extended Terms
Off Balance Sheet Financing
At the End of the Lease:
The lessee will usually have the option to purchase, re-lease, or return the property to the lessor. When the property is to be purchased, three main options can be considered:
- A "Buck Out" option means at the end of the lease the lessee may purchase the equipment for $1.00.
- A "10%" option means the lessee will purchase the property for 10% of the original value. Other percentage levels can also be chosen.
- The "FMV" is the Fair Market Value approach, where the property is purchased at the current, end of lease, Fair Market Value.
pss Leasing Programs:
pss has worked with several leasing program providers to establish leasing programs specific to the requirements of the retail industry. Our leasing programs include support for not only the hardware but the software, installation, labor, freight, and service contract fees as well. Feel free to contact pss with any leasing questions you may have.
|
