Fair Market ValueProvides the lowest monthly payment option. Plus, at the end of the term, you have the option to refresh the equipment with the most current technology, return the equipment, or purchase the equipment at the fair market value. |
$1.00 Buyout LeaseIn addition to owning the equipment at lease end, your equipment appears as an asset on your balance sheet and can be eligible for 100% bonus depreciation on your taxes. |
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| LEASE COMPARISON |
Fair Market Value Lease |
$1.00 Buyout Lease |
| Monthly Payment | Lowest | Highest |
| Ownership at End of Term | Optional purchase at fair market value you decide at the end of term | Yes, decided at the beginning of lease, will be purchased for $1.00 |
| Accounting | Treated as an operating expense | Treated as an asset |
Financing & Leasing
Finance your technology solution through GTS financing programs.Fair Market Value
Provides the lowest monthly payment option. Plus, at the end of the term, you have the option to refresh the equipment with the most current technology, return the equipment, or purchase the equipment at the fair market value.
| LEASE COMPARISON |
Fair Market Value Lease |
| Monthly Payment | Lowest |
| Ownership at End of Term | Optional purchase at fair market value you decide at the end of term |
| Accounting | Treated as an operating expense |
$1.00 Buyout Lease
In addition to owning the equipment at lease end, your equipment appears as an asset on your balance sheet and can be eligible for 100% bonus depreciation on your taxes.
| LEASE COMPARISON |
$1.00 Buyout Lease |
| Monthly Payment | Highest |
| Ownership at End of Term | Yes, decided at the beginning of lease, will be purchased for $1.00 |
| Accounting | Treated as an asset |
Technology Financing FAQs
Why Should My Company Finance New Technology?
Financing preservces cash, protects credit lines, and is eligible for tax benefits. It also helps you budget monthly expenses.
Should We Buy And Own Our New Technology?
There are some cases where outright buying equipment makes sense, but at the rate technology is evolving you may end up owning an obsolete system. Ask yourself two questions to determine whether financing is right for you.
- How else can you use your cash or credit lines? Many companies use cash to hire new employees, invest in marketing and future company growth, or for unforeseen emergencies.
- Are you prepared to make another capital investment to upgrade this system in 3-5 years? Financing puts you on a monthly budget, and by the time the system is outdated, you will be able to upgrade an already budgeted item and keep a comparable monthly payment.
Is Financing Only For Large Enterprise Companies?
According to the Equipment Leasing & Finance Association, 7 in 10 businesses in the United States use some form of financing to acquire equipment (excludes credit cards). Financing provides benefits to businesses large and small.
How Much Money Will I Have To Put Down?
We provide financing with no money down on most transactions. Bank loans or credit lines will often require money down to initiate the transaction.
What Are The Different Types Of Financing Structures?
Customers typically choose between $1 Buyout, Fair Market Value, or rental agreement. Many customers choose a rental program to keep their technology current, and for operating expense benefits.
| $1 Buyout | Fair Market Value | Rental Program | |
| Your Benefits | Accounted on your balance sheet and depreciated | Lowest monthly payment | Generally considered an operating expense |
| End-of-Term | You own after final payment | You have the flexibility to purchase, upgrade, rent, or return | You may return, continue renting, or upgrade |
What Are The Differences Between A Capital And An Operating Purchase?
Typically, a $1 buyout lease is a capital purchase. It is recorded on your books as an asset, and you can benefit from the Section 179 tax break. However, if you are looking for something that you can treat as an operating expense, renting the equipment through a finance rental agreement could be the best option. Check with your accountant to see which benefits suit you best.
Can We Add Equipment To Our Agreement?
Yes, adding equipment to your agreement during the term is simple. Most times, add-ons are co-terminus, making the new payment end at the same time as the original lease.
