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Buy and sell used
equipment on our Bulletin Boards
There are a few important factors to be considered
when planning a furniture aquisition. There are numerous payment
structures available as well as different end of term options. C.E.F.
also offers custom payment plans which we have deemed our "flexible
finance" options.
- Seasonal payments
This plan is especially beneficial for those customers who experience
fluctuating time periods of higher and lower revenue production
on an annual basis. To utilize this plan, the customer designates
which 3 consecutive months they require off. The remaining 9 payments
during each year will be calculated based upon the appropriate
rate factor.
- Step down payments
Step down leases begin with higher monthly lease rentals and then
decline over the course of the term. This structure is beneficial
for equipment that is subject to rapid depreciation or technological
obsolescence. This also allows the lessee to accelerate their
write off's for tax purposes.
- Step up payments
Step up leases begin with lower monthly lease rentals that increase
or "step up" over the lease term. The steps may be created
at any point during the term but are most commonly done semi-annually
or annually. This structure is beneficial for equipment that takes
time to reach its full production capacity.
- Annual / semi-annual / quarterly
For those customers that request annual, semi-annual or quarterly
payments, C.E.F. can accomodate those needs. These structures
are beneficial for easy cost forecasting and managing expenditures.
- Master lease
C.E.F. offers a master lease line to make securing subsequent
leases quick and easy for the customer. By utilizing C.E.F.'s
plain English lease agreement on the initial funding, all the
customer needs to sign for future transactions is our one page
lease supplement.
- Fair market value
This structure is typically considered an operating lease by the
IRS. Each monthly lease rental is treated as a "line item
deduction" for tax purposes. At the end of the lease term
the customer can return the equipment, continue the lease or purchase
the equipment outright for the fair market value.
- $1.00 buyout
This option is essentially a finance agreement, similar to a bank
loan. The customer depreciates the asset over a fixed period of
time for tax purposes. There is no trade in option at the end
of the lease and the customer owns the equipment for $1.00 (or
$101 depending upon state laws).
- 10% PUT (Purchase Upon Termination)
This structure provides lower monthly payments by affixing a 10%
balloon payment to the end of the lease term. At the end of the
lease the customer owns the equipment for 10% of the original
cost.
- P.R.O. (Purchase, Renewal Option)
PRO leases are treated as "true leases" for federal
income tax purposes. C.E.F. takes the depreciation and passes
on the benefit to the lessee in the form of a lower rate. This
structure is typically classified as an operating lease (as defined
by FASB-13). At the end of the term the lessee has the option
to either purchase the equipment or renew the lease based upon
a percentage of the original equipment cost.
- 60-day deferral
C.E.F offers a 60-day deferral program in which the lessee pays
the standard security deposit (1st & last monthly payments)
with documentation and then is not invoiced until 60 days after
funding. Since C.E.F. bills in arrears, this is actually a 90-day
deferred payment plan.
- 90-day deferral
The 90-day deferral plan is extremely helpful for those customers
acquiring equipment that does not generate income during the first
90 days of implementation. With this program, C.E.F. has minimal
contact payments of $25.00 for each of the first three months
followed by the normal term at the determined rate factor.
- 7 x $100
With this program, the customer pays a $100.00 security deposit
and has their first six monthly payments at $100.00 each. The
remaining 30, 42, or 54 payments are at the determined rate factor.
- 6 x $99
With this program, the customer makes two payments as a security
deposit totaling $198.00. The first six monthly payments are fixed
at $99.00 each followed by 30, 42, or 54 payments at the determined
rate factor.
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