TMT-EXCEL Communications can offer you several different leasing programs,
through third party companies, to best fit your needs. Contact your
TMT-EXCEL sales rep for additional information.
Below are examples of the leases available and a brief description. Please
check with your financial or tax advisor for the best choice for your situation.
Fair Market Value (FMV)
Get the lowest possible lease payment with an end of lease purchase option
not to exceed the fair market value of the equipment. This type of lease may
have significant tax advantages.
$1 Purchase Option Lease
This lease type entitles the customer the benefits of ownership, such as interest
and depreciation deductions. After all the lease payments are made, the
customer can purchase the equipment for $1.00.
10% Purchase Option Lease
At the end of the lease, the option to purchase is fixed at 10% of the original
cost allowing for lower monthly lease payments and a predictable cost of purchase
at the end of the initial lease term.
A balloon lease allows for a commitment to a guaranteed purchase price.
This is beneficial where the value of the equipment is strong and the lessee
wants to leverage that value in order to have a lower monthly payment.
Some equipment requires time to realize its value. A step lease allows lower
monthly payments for an initial period then "step-up" to the normal payment
for the remainder of the lease term. This type of lease is ideal for equipment
that has a longer training period or might generate a higher level of revenue
at a later date.
It is also beneficial for customer's who expect their revenues to grow over
the term of the lease. They make lower payments in the beginning and higher
payments as their business grows.
Deferred Payment Lease
This lease has no payments for a specific period of time. For example, the
lease may have no payments for the first 60 or 90 days.