Real financing for real companies.
Crestmark Vendor Finance provides customized, flexible financing for diverse industries nationwide. Let us help identify the right financing structure for your equipment needs.
• Operating Leases (FMV)
• Capital Leases ($1 Buyout)
• Equipment Finance Agreements
Fair Market Value Lease (FMV)
An Operating Lease, or Fair Market Value Lease (FMV) allows the business to pay for equipment only during the period of use, rather than owning the equipment. It’s a good option for equipment that holds a high residual value, or for equipment that’s only needed for short-term or seasonal use. Because you only pay for the value of the usage-term, you don’t have to be concerned with holding obsolete equipment at the end of the contract. At lease-end the equipment is either returned or purchased at the fair market value rate.
$1 Buy-Out Lease
With a Capital Lease, also known as a $1 Buyout Lease, the business essentially “owns” the equipment, and holds the equipment. As with a FMV lease, a $1 Buyout Lease allows the business to secure the equipment they need without having a large upfront outlay of cash. But with a $1 Buyout the business owns the equipment at lease end. It’s a good option for equipment that you’ll need to use for a long period of time, that holds a high residual value, or that you’d like to own but are deterred by a high purchase price. At lease-end you “purchase” the equipment for $1.
Equipment Finance Agreements (EFA)
With an Equipment Finance Agreement, equipment value is defined at the beginning of the lease; at lease termination there are no surprises, and no unanticipated tax liability.
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