Equipment Lease Types

Type of Equipment Leasing Contracts

Finance leases are the best idea if you intend to keep the equipment at the end of the lease. The main advantage of this type of lease is that it gives you the option to purchase the equipment for a nominal fee. Payment terms on finance leases tend to last close to the expected useful life of the equipment.

True Lease
True Lease which is also known as a tax-oriented lease is a equipment lease option. With a true lease you will typically receive tax benefits (see your tax advisor) as the lease expense is considered an operational expense. A true lease is an IRS term, what it refers to is the structure of the equipment lease so your entire lease payment can be fully deductible.
At the end of your lease term you will typically have options which include purchasing the equipment for its fair market value, rent the equipment or return the equipment. Compare free, multiple true lease quotes from multiple vendors today, there is no cost and no obligation.

Synthetic Lease
A synthetic lease is an equipment leasing option that appears as a lease from an accounting standpoint, but as a loan from a tax standpoint. Essentially it is not recorded as a liability on the balance sheet, but as an expense on the income statement. The result is an off-balance sheet account of the financing and the tax benefits that go along with the financed equipment. Compare free multiple synthetic equipment lease quotes with no obligation. You'll receive multiple quotes and be able to compare to get the best rates, terms, and service, nationwide.

TRAC Lease
TRAC Lease or Terminal Rental Adjustment Clause are open ended leases for the purpose of acquiring commercial vehicles, such as trucks, trailers, cars and vans. TRAC Leases are limited to vehicles and trailers that are used at least 50% of the time for business. With a TRAC lease, there are typically no mileage restrictions or charges. At the end of the TRAC lease, you have the option to purchase the vehicle or trailer for the residual amount, trade-in for a replacement vehicle which applies any equity to the new vehicle, extend the lease by financing the residual amount, or you can turn in the vehicle or trailer. Compare free quotes with no obligation from multiple vendors.