Finance

Federal Government Leasing

  • Lease Advisory Group understands the federal acquisition process and buying patterns. We provide alternate payment plans (APP), lease-to-ownership (LTOP), lease-with-option to own (LWOO), straight lease, and step lease. As appropriate, we accept termination liabilities from Termination for Convenience, Non-Appropriation, and Non-Renewal.
  • Lease Advisory Group will service all lease agreements, including billing, collecting, and option year renewals.

Vendor Programs

Under a pre-defined Master Lease Agreement, we will provide a repeatable, simplified lease financing arrangement whereby we provide flexible payment structures that result in sale treatment for the vendor. Also provided are training vendor personnel and access to leasing consultants in support of vendor activities.

Assets Financed

Lease Advisory Group will finance a wide range of products:

  • IT Equipment and Software
  • Telecommunications Equipment
  • Managed Services
  • Office Equipment
  • Construction and Industrial Equipment
  • Office Furniture
  • Healthcare and Laboratory Products
  • Modular Buildings
  • Transportation Equipment

Municipal Finance

Municipal finance offers several benefits to government agencies and vendors. State and local government agencies are able to acquire essential equipment and services by means of municipal finance.

While vendors benefit from being able to close more sales. The Lease Advisory Group offers the expertise to make the municipal finance process easier for both parties.

Capital Lease ($1 buyout)

Considered a lease to own finance program - The customer purchases the equipment for $1 at the end of a capital lease and the equipment title is then transferred from the leasing company to the customer.

A Capital Lease typically allows you to buy the equipment out for a nominal cost, such as $1. Plus a capital lease does not stress your credit as a loan would, which frees up your credit for important day-to-day activities.

Who Qualifies for a Tax-exempt Municipal Lease?

  • State Governments
  • Public School Districts
  • City Governments
  • County Governments
  • Public Colleges and Universities
  • Hospitals, Municipal and 501c3
  • Fire Districts
  • Port and Airport Authorities
  • Water and Sewer Districts
  • Emergency Service Departments

What Type of Equipment Can Be Lease-purchased?

  • Computer Hardware and Software
  • Fire/Emergency Rescue Equipment
  • Vehicles and Heavy Equipment
  • Medical Equipment and Facilities
  • Construction Equipment
  • Energy Management Systems
  • Telecommunications Equipment
  • Airport Equipment and Facilities
  • Office Equipment
  • Waster/Water Equipment

What Are the Requirements for Using a Tax-exempt Municipal Lease?

There are a number of requirements that government agencies must meet in order to be eligible to use a tax-exempt municipal lease, but here are the main ones to remember:

  • Transaction must be legal, valid, and binding under local, state, and federal laws
  • Equipment must be essential to government operation
  • Must be a capital lease, which means the intent is to own the equipment at the lease end
  • Lessee must meet the eligibility requirements of Section 103 of the U. S Tax Code
  • 8038G/8038GC IRS Form must be completed and filed
  • Entities utilizing tax-exempt municipal lease must have:
  • 1 Power to levy taxes
  • 2 Power of eminent domain
  • 3 Policy powers

What Are the Benefits of Using a Tax-exempt Municipal Lease?

Benefits to you:

  • Offer your customer the best economic terms available
  • Receive full product payment upfront as delivered and accepted
  • Simple process – purchase order, delivery, acceptance same as a cash sale
  • Prompt payment directly from the funding source
  • Close the sale now, rather than waiting for future budgets
  • Benefits to the government customer:
  • 1 Ability to stretch budgets and maximize available capital
  • 2 No property tax, no sales tax (except AZ, CA, and NC)
  • 3 Lower interest cost, lower debt service = lower payments = lower total cost of ownership
  • 4 Flexible payment structures (monthly, quarterly, semi-annual, annual)
  • 5 Voter approval usually not required
  • 6 Interest rates on transactions significantly lower than taxable leases
  • 7 Asset ownership and control

Managing Your Financial Stability

Lease Advisory Group can also offer a Fair Market Value (FMV) financing structure for all industries as well if that’s of interest to your clients. This structure acts more like a rental of the equipment versus a loan with intent to own. Under this structure, the Lessor holds Title to the equipment and can take depreciation benefits as the owner of the equipment.

It is also important to note that under these structure sales, and property tax exemptions may not pass through to the Lessor and under the terms of the Lease Agreement the Lessee would be responsible for the reimbursement of such charges.

Lease Advisory Group LLC

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