What are my cash flow considerations?
A typical Standard Lease usually requires the first and last payment up-front and then a level monthly payment for the term of the lease. Terms usually range from 24 to 60 months.
A Step Up Lease is usually used for higher priced equipment (over $75,000). Payments start low, then "step up" to a normal payment. This allows the lessee to acquire the equipment and put it into production without significantly impacting cash flow.
Skip Payment is an option for seasonal businesses. A lessee agrees to a schedule that requires payments only on certain months of the year. This allows cash flow to correspond with the payment schedule.
Deferred payment is used for businesses acquiring income-producing equipment. With the deferred payment program, a lessee has 90 days to use the equipment before the second payment is due.
There are a variety of options at the end of each of these leases.