Types of Leases

First South Bank Leasing offers a wide variety of leasing programs to enable your company to acquire the equipment it needs with the innovative financing solution that works best for you.

Lease Purchase ($1 Buy-Out)
This plan allows you to buy the equipment at the end of the lease term for a nominal amount of $1. For most companies that intend to keep the equipment at the end of the lease, this is the best option. In essence, you are building "equity" in the equipment, so you can also sell the equipment at the end of the lease or trade it in for the latest technology.

Operating Lease (Fair Market Value Buy-Out)
This structure provides you with the option to purchase the equipment at the end of the lease for its then Fair Market Value, continue leasing the equipment based on its Fair Market Value, or return the equipment. The payment during the term is lower than on a lease purchase, but the cost at the end of the lease is higher. In most cases, there is a "cap" on the Fair Market Value of 10% of the original cost of the equipment.

Fixed Purchase Option
This option is for those customers that favor the flexibility of an FMV lease. However want to cap their equipment buyout at a certain percentage of the equipment value. 10% is a common buyout option.

Payment Structure:

Deferred Payment
This program is attractive to companies in which the equipment will be used for a project that won’t generate revenue for a short period of time, possibly three to six months. The lease is structured so that the initial months have nominal or no payments.

Seasonal Payment
This lease is designed for those businesses with seasonal cash flows. We can design a lease where the payments might be lower during the summer months and higher during the rest of the year.

Step-up / Step-down payments
This can be structured so that lease payments can be set up to match a company’s cash flow needs. Payments can start low and then increase during the later years of the lease, or payments can start high and then decrease, minimizing finance charges.

Benefits of Leasing

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