Fast Fact
The main reason why equipment leasing continues to grow is that leasing meets the needs of so many types and sizes of companies.
Tax-Exempt Municipal Leasing
What Is Tax-Exempt Municipal Leasing?
Tax-exempt municipal leasing allows municipalities to acquire needed equipment without depleting their operating budgets.
- Is used to finance essential use equipment or projects (such as buildings, water treatment facilities, leasehold improvements. Etc.)
- Is not a rental agreement, as the title to the equipment is turned over to the municipality for $1.00 at the end of the lease.
- Is considered a current operating expense
- Offers the option of purchasing the equipment outright, at any time, for a predetermined purchase price.
- Is an avenue to ownership that does not create a debt obligation
- Is a renewable contract, subject to annual appropriation of funds.
- Does not affect the municipalities' long term debt.?
TERM: Normal duration of a lease is generally for a period of less than the asset's expected useful life (typically 3-7 years). However, leases on buildings and other assets with longer useful lives can go as long as 10 to 20 years.
SIZE: Municipal lease transactions range from $15,000 to several millions of dollars.
PAYMENT: Payments can be structured to meet the lessee's cash flow requirements, payable on a monthly basis. The payments include cost of the equipment and all financing charges.
RATES: Interest rates are generally fixed for the term of the lease. In some cases a repricing window will be documented into the lease to allow for a repricing every 3, 5, or 7 years for longer term lease contracts.
Types of Equipment Leased by Frontier Leasing Corporation:
- School Buses
- Portable/Modular Classrooms
- Furniture and Fixtures
- Road Maintenance Equipment
- Medical Equipment
- Leasehold Improvements
- Telephone Systems
- 911 Dispatch Systems
- Computer Hardware
- Computer Software
- Fire Trucks
- Ambulances
- Golf Course Equipment
- Building Projects