First Business Equipment Finance provides a full range of lease & loan options for your equipment purchases. Several of these options are listed below and many of them, with proper structuring, can qualify as operating leases under FASB 13.

Tax Leases

Leases in which First Business retains depreciation on equipment we purchase - and you, the lessee, get the benefit of lower lease payments.

Early Buy Out (EBO) Leases

Tax leases with a "one time opportunity" during which the lessee may terminate the transaction, prior to its scheduled expiration, through an early buy out option.

CAP Leases

Tax leases in which you may purchase the equipment for fair market value, not to exceed a predetermined percentage of the original equipment cost (the CAP) at lease expiration.

First Amendment Leases

A lease transaction where the lessee agrees to purchase the equipment at the greater of fair market value or a predetermined price. Generally, First Business retains the depreciation on these leases.

Terminal Rental Adjustment Clause (TRAC) Leases

A special type of true lease that is generally used for commercial vehicles like trucks, tractors, and trailers. Special provision of the IRS code allow for pre-determined residual values (as opposed to "future" fair market values) to be negotiated in advance while maintaining the "full deductibility" of a true lease. This type of lease is generally less expensive than other leases of conventional bank financing. The lessor would retain the rights to any depreciation.

Modified TRAC Leases

TRAC leases in which the lessee's exposure for the predetermined value, residual responsibility, is limited, and the balance of the risk is transferred to First Business. These transactions may be structured as operating leases under FASB 13.

Lease Purchase / Finance Lease

A transaction in which the equipment is purchased for a prearranged price (usually $1) at the end of the lease term. Depreciation benefits are for the benefit of the lessee/user. May also be referred to as a nominal or ($1) dollar-buyout lease.

Loans

Note and security agreements through which First Business finances the debtor/client's purchase of equipment on a fixed or floating rate basis.