CenterState’s local market decision making and management allow us to better understand your business financial needs and to assist you in determining whether a lease or purchase of equipment is in the best interest of your company.
We understand that your business generates revenue by using equipment…not owning it.
Let us assist you in learning how equipment leasing can conserve cash flow and improve bottom-line performance. CenterState’s Business Leasing has helped private, private and municipal organizations, large and small, address their equipment needs and find solutions that are advantageous to their strategic plans and cash flow needs.
How Equipment Lease Financing Works
CenterState’s Business Leasing offers a comprehensive range of products, with complete flexibility to design the lease to suit your businesses’ special requirements.
Tax-Oriented Lease Products
- Fair market value leases offer a variety of buyout options
- Terminal rental adjustment clause (TRAC) leases are used to finance titled, commercial vehicles
Non-Tax-Oriented Lease Products
- Conditional Sales Contracts give lessees full use of equipment, under the lease agreement, and transfer title once equipment has been paid off
- Municipal leases provide tax-exempt interest rates to municipal customers
- Tax-Exempt Lease Purchase Agreements offer financing solutions for entities incorporated as Non-Profit 501(C)(3) organizations (private schools, universities, hospitals and other not-for-profit organizations)
The Benefits of Equipment Lease Financing
- Conservation of Cash Flow – Tax-oriented lease payments are smaller than those associated with traditional term loan financing, increasing a company’s cash flow
- No Down Payment – Companies can avoid down payments, which may be required under traditional financing methods
- Balance Sheet Considerations – By leasing rather than buying, companies reduce balance sheet debt, potentially improving financial ratios and preserving borrowing capacity
- Tax Benefits – Some companies, such as those that are capital intensive or subject to Alternative Minimum Tax (AMT) are unable to optimize tax benefits from owning equipment. Companies can utilize tax-oriented leases to transfer the tax benefits of equipment ownership to M&T in exchange for lower rental payments.
- Flexibility – We offer structuring flexibility in lease terms and extensions, early termination options and payment schedules
- Keep Pace with Technology – Lease terms can be set to match the useful life of equipment that can quickly become obsolete
We welcome the opportunity to show you the CenterState difference. Please contact one of our Commercial Bankers today!