Equipment Leasing & Financing Programs
Lease Purchase ($1.00 Buy-Out)
This plan allows you to buy the equipment at the end of the lease term for a nominal amount of $1.00. For most companies that intend to keep the equipment at the end of the lease, this is the best option. In essence, you are building "equity" in the equipment, so you can also sell the equipment at the end of the lease or trade it in for the latest technology. (Also known as a Capital Lease.)
Operating Lease (Fair Market Value Buy-Out)
This structure provides you with the option to purchase the equipment at the end of the lease for its then Fair Market Value, continue leasing the equipment based on its Fair Market Value, or return the equipment. The payment during the term is lower than on a lease purchase, but the cost at the end of the lease is higher. In most cases, there is a "cap" on the Fair Market Value of 10% of the original cost of the equipment. (Certain restrictions apply)
Equipment Finance Agreement (EFA)
A type of loan similar to a lease in initial cash outlay providing the gratification and liabilities of, ownership of, but lacking the reduction of tax liability afforded by a lease. Often used in refinancing to keep cash outlay low while avoiding double taxation. When required by lessors, it is generally to avoid potential liabilities arising from especially dangerous equipment or equipment involving hazardous waste materials.
Sale Lease Back (SLB)
A business arrangement whereby property is simultaneously sold and leased back to the seller for usually long-term continued use. Also called sale and leaseback, sale-leaseback. A means of re-acquiring working capital, these types of transactions normally require assets significantly higher than the sale price.
For start-up companies, Trinex offers a lease in which we provide 100% financing. To qualify, the Company should have venture capital backing and enough cash on hand to justify the projections in its business plan. For those companies that do not have a venture capital investor, Trinex can usually structure a lease partially collateralized by cash or marketable securities.
This program is available to all city and state agencies such as public school districts, municipal hospitals, police and fire departments. Due to the tax exempt status of the Lessee, rates are much lower than standard commercial rates.