Equipment Leasing Programs
The value proposition for leasing equipment and financing equipment is that it offers businesses significant financial benefits and is less capital intensive than an outright purchase.
Sun South Equipment Leasing, Inc. offers some of the most flexible terms for a wide 
variety of equipment leasing needs. Whether your business needs new, pre-owned or even unique equipment or if your business is just considering an upgrade, Sun South is experienced with all equipment types in every industry and regards evey customer as unique in their marketplace and deserving of our individualized attention and will custom create a lease or finance structure to fit your company's operational needs. Simply give us a call to learn more about our lease finance products and how our cost-effective programs can conserve your working capital and increase your cash flow.
Equipment Lease: a simple agreement between the owner (lessor) of the equipment and the user (lessee) of the equipment that allows the lessee to have use of the equipment for a negotiated term and a fixed rate monthly payment and a pre-determined purchase option at the end of the term. The user (lessee) will select the exact equipment they need from the vendor of their choice and negotiate the price.
Types of Leases Offered
Operating/True Lease: The oldest form of leasing available, an operating lease (or true lease) is a short-term rental agreement. The leased equipment is classified as a rental, allowing the lessee to return the equipment and ownership obligation of the equipment to the lessor at the end of the term. This lease offers the lowest monthly payment and is the most tax-friendly form of leasing, additionally, true or operating leases offer more flexible purchase options at the "end of term" such as:
- Purchase the equipment for its then fair market value or an option amount of 10%, or
- Renew the lease term and continue to have use of the equipment, or
- Trade-in outdated technology and upgrade to newer technology on a new lease agreement, or
- Return the equipment to the owner (lessor) with no further payment obligation or penalty fees to pay.
Capital/ Lease Finance: The preferred lease method for long-term equipment use and eventual ownership; a capital lease (finance lease) classifies equipment as being purchased and owned by the lessee, allowing the lessee to claim tax deductions on the equipment depreciation and is the best option if the leased asset will maintain its usefulness during and after the lease finance term.
Equipment Finance Agreement (EFA): A method of equipment financing that closely resembles an equipment loan except unlike an installment loan EFA’s are a fixed rate term obligation for the entire life of the loan agreement; borrower owns the equipment and the lender merely retains a security interest through the transaction. Both the depreciated value of the equipment and the interest on finance payments are tax deductible to the borrower.
Flexible "end of term" Options
$1/$101 buy-out: This is the purchase option amount at the end of a capital lease or finance lease. Very simply this is a fixed rate term obligation throughout the entire life of the term and at the end of the term the lessee pays $1.00 or $101 in certain states and ownership is transfer to the lessee.
FMV (fair market value): Purchase option at the end of an operating lease or true lease for the equipments then fair market value (FMV) or 10% option amount. The lease payments are lower then the $101 buy-out and are an operating expense (rent expense) and are tax deductible against total taxable revenues. The leased asset is not an asset on the company's balance sheet. Therefore, this type of lease is often referred to as off-balance-sheet financing.
10% PUT (Purchase upon Termination): This option requires a 10%, residual payment at the "end of term". The lessee is obligated to pay a predetermined percent of the original equipment cost at the termination of the lease. By leaving a residual amount at the end of the lease, the monthly payment is lowered and provides your business some tax benefits.
Complete our lease credit application and fax to (863) 583-3100 or call our toll free number 866-268-9504 for a free no obligation lease consultation and quote from one of our experienced lease consultants now. Upon receiving your completed application Sun South will promptly process for prelimenary approval within 24 hours. Documents are executed to you via fax or email for authorized signature(s). The equipment you have chosen will be delivered for acceptance, and/or installed if necessary.
Sun South will overnight payment to the equipment vendor/dealer within 24 hours of receiving confirmed delivery and acceptance of all equipment listed under the term agreement. It's that simple and easy.
Equipment Leasing Programs
The value proposition for leasing equipment and financing equipment is that it offers businesses significant financial benefits and is less capital intensive than an outright purchase.
Sun South Equipment Leasing, Inc. offers some of the most flexible terms for a wide variety of equipment leasing needs. Whether your business needs new, pre-owned or even unique equipment or if your business is just considering an upgrade, Sun South is experienced with all equipment types in every industry and regards evey customer as unique in their marketplace and deserving of our individualized attention and will custom create a lease or finance structure to fit your company's operational needs. Simply give us a call to learn more about our lease finance products and how our cost-effective programs can conserve your working capital and increase your cash flow.
Equipment Lease: a simple agreement between the owner (lessor) of the equipment and the user (lessee) of the equipment that allows the lessee to have use of the equipment for a negotiated term and a fixed rate monthly payment and a pre-determined purchase option at the end of the term. The user (lessee) will select the exact equipment they need from the vendor of their choice and negotiate the price.
Types of Leases Offered
Operating/True Lease: The oldest form of leasing available, an operating lease (or true lease) is a short-term rental agreement. The leased equipment is classified as a rental, allowing the lessee to return the equipment and ownership obligation of the equipment to the lessor at the end of the term. This lease offers the lowest monthly payment and is the most tax-friendly form of leasing, additionally, true or operating leases offer more flexible purchase options at the "end of term" such as:
- Purchase the equipment for its then fair market value or an option amount of 10%, or
- Renew the lease term and continue to have use of the equipment, or
- Trade-in outdated technology and upgrade to newer technology on a new lease agreement, or
- Return the equipment to the owner (lessor) with no further payment obligation or penalty fees to pay.
Capital/ Lease Finance: The preferred lease method for long-term equipment use and eventual ownership; a capital lease (finance lease) classifies equipment as being purchased and owned by the lessee, allowing the lessee to claim tax deductions on the equipment depreciation and is the best option if the leased asset will maintain its usefulness during and after the lease finance term.
Equipment Finance Agreement (EFA): A method of equipment financing that closely resembles an equipment loan except unlike an installment loan EFA’s are a fixed rate term obligation for the entire life of the loan agreement; borrower owns the equipment and the lender merely retains a security interest through the transaction. Both the depreciated value of the equipment and the interest on finance payments are tax deductible to the borrower.
Flexible "end of term" Options
$1/$101 buy-out: This is the purchase option amount at the end of a capital lease or finance lease. Very simply this is a fixed rate term obligation throughout the entire life of the term and at the end of the term the lessee pays $1.00 or $101 in certain states and ownership is transfer to the lessee.
FMV (fair market value): Purchase option at the end of an operating lease or true lease for the equipments then fair market value (FMV) or 10% option amount. The lease payments are lower then the $101 buy-out and are an operating expense (rent expense) and are tax deductible against total taxable revenues. The leased asset is not an asset on the company's balance sheet. Therefore, this type of lease is often referred to as off-balance-sheet financing.
10% PUT (Purchase upon Termination): This option requires a 10%, residual payment at the "end of term". The lessee is obligated to pay a predetermined percent of the original equipment cost at the termination of the lease. By leaving a residual amount at the end of the lease, the monthly payment is lowered and provides your business some tax benefits.
Complete our lease credit application and fax to (863) 583-3100 or call our toll free number 866-268-9504 for a free no obligation lease consultation and quote from one of our experienced lease consultants now. Upon receiving your completed application Sun South will promptly process for prelimenary approval within 24 hours. Documents are executed to you via fax or email for authorized signature(s). The equipment you have chosen will be delivered for acceptance, and/or installed if necessary.
Sun South will overnight payment to the equipment vendor/dealer within 24 hours of receiving confirmed delivery and acceptance of all equipment listed under the term agreement. It's that simple and easy.