Jyske Leasing understands that no two businesses are exactly the same. Our lease agreement is a flexible financial product that can be customized to accommodate almost any desired situation. Here is a sampling of a few lease structures we can arrange to help meet your objectives:
As the most common lease structure, a stretch lease offers lessees the lowest monthly payment by extending or �stretching� out an approved term over a longer period of time. For added flexibility, stretch leases include an option to purchase leased equipment early at a preset time and amount.
Fair Market Value Lease
Also known as a true lease, Fair Market Value (FMV) leases provide for the greatest flexibility and tax advantage. This type of lease is often considered an operating lease structure as it is designed for equipment to be rented over a selected period of time and contains end of term provisions for equipment to be returned, purchased at market value, or rented on month-to-month basis. This structure is particularly advantageous for businesses acquiring tangible but highly depreciable assets such as computer systems and high tech equipment.
If long-term ownership of equipment is the end goal, a residual lease is an option worth considering. Equipment leased using this structure is financed over a predetermined period of time with a fixed buyout at the end of the lease. Residual values typically range between $10 and 10% of the original equipment cost.
In every business there are times when acquiring equipment is not as simple as selecting equipment and financing the purchase over a period of time with a static payment. Perhaps your business needs to unlock value of owned and unencumbered assets for cash flow purposes. Maybe a static monthly payment does not suit the seasonality of your business or perhaps your business requires time to ramp up a project. We can help by customizing our leasing products to suit a number of special situations some of which include:
A type of lease arrangement whereby an asset owned by the Lessee is sold the Lessor for cash and is in turn rented back by the Lessee. This type of lease is often when the Lessee is sourcing additional cash for its business.
Software Only Transactions
Software only transactions are generally difficult to complete due to the issue of tangibility. However, we can structure transactions for well-established businesses provided we are in receipt of supporting documentation ranging from personal guarantees for smaller transactions and financial statements for transactions in excess of $30,000.
Step Payment Transactions
Step leases, either up or down, are designed to match irregular revenue streams inherent in the nature of your business. Step-up leases begin with lower then normally amortized monthly lease payments that increase or 'step-up' over the lease term. The steps may be structured into a lease for virtually any interval however 6 and 12 month step intervals are most common. Step-down leases follow the same theory except monthly rentals are periodically reduced over the term of the lease.
Seasonal Payment / Skip Transactions
Seasonal leases are designed for businesses that have discernible peaks and valleys in its forecasted revenue streams. This structure is best suited for businesses such as golf course operators, landscapers, and construction businesses.
90 Day Deferral Transactions
Depending on the situation and the credit strength of the lessee, Jyske Leasing can structure a 90-day deferral option. This option can make the most sense for customer who need immediate access to new equipment but need time to ramp up cash flow from operations.
We are always available to discuss the various options and structures. Feel free to contact us
for more information.