Types of Leases
With different payment structures and end of term options to choose from, KTK Financial makes leasing equipment easy and flexible.. Our experienced account executives can structure a lease to fit your exact business needs and guide you to which program is right for you. Some of our leasing options are included below, including some of our specialty leases.
Fair Market Value Lease:
Also known as an operating lease, this option may be tax deductible under IRS guidelines. A fair market value lease is a traditional lease agreement that provides you with three options when the term of your equipment lease ends; You have the option to return the equipment, purchase your leased equipment at fair market value, or renew the equipment lease.
10% PUT or Purchase Option:
This plan is particularly attractive to customers who are uncertain about purchasing the equipment at the end of the lease but want the advantage of a fixed purchase price and a lower monthly payment. The lessee has the option to pay a predetermined percent of the original equipment cost at the end of the lease, or walk away. Like a fair market value lease, this plan also offers various end-of-lease options. Also considered a combination of the capital and operating leases, this option can be 10%, 15%, or 20%. By leaving a residual at the end of the lease, the monthly payments are lowered. Tax benefits are also available with these options.
$1.00 Purchase Option:
Also known as a capital lease and finance lease, $1.00 buy out is the closest option to standard bank financing. With this equipment lease financing option, at the end of your lease term, you “buy” your equipment for just a $1.00. This is an attractive option for companies who know their equipment will not lose value and are planning to keep their equipment at the end of the lease.
Sale & LeaseBack:
Leaseback is a useful tool for companies needing working capital who do not want to use their bank lines, or have credit issues. With the Leaseback program, we can use the equity in your existing equipment to give your company the working capital it needs. We buy your equipment and lease it back to you. When all the payments are made, you own the equipment again.
Equipment Finance Agreement (EFA)
This programs is a loan rather than a lease and provides favorable early buy out terms.
Software Only Leases
We can finance software only purchases and even include significant soft-costs such as integration and training.
Seasonal Payment Program
This lease is designed for companies that may have cash flow fluctuations based on time of the year? Our Seasonal Payment Program offers the flexibility of different payment options based on your individual requirements.