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203 E. Park Avenue
Libertyville, Illinois 60048
What are the benefits?
There are many benefits to tax-exempt leasing:
- No down payment is required.
- Lower rates available - Interest income is exempt from federal taxes, therefore, lower financing rates may be available, resulting in lower payments.
- Hedge against inflation - buy now at today's low interest rates before prices rise.
- Builds equity.
- It is not considered debt.
- For municipalities, it is part of the operating budget - Only the current years' payment is in the operating budget.
- Enables you to replace obsolete or maintenance intensive equipment.
- Can be implemented quickly since voter approval is not required.
- Risk is low - For municipalities, the funds for payments are subject to annual budgetary appropriations. If funds are not appropriated, the municipality has the right to terminate the lease without penalty.
- Lessee takes title - Typically, the Lessee takes title to the equipment at the beginning of the lease. The Lessor takes a security interest in the equipment as collateral.
- Can be used for large and small projects.
- Can be used for new, used and refurbished equipment.
- Flexible terms available (1-15 years, annual, semi-annual, quarterly, or monthly payments).
We can help! Call us today.