Features & Benefits ~ Synthetic Lease

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With off-balance sheet financing, qualifying payments on a True Tax Lease are up to 100% deductible as an operating expense as opposed to only being able to deduct depreciation and interest. 

We understand that financing may be needed for associated project costs including soft costs such as installation, design fees, software, delivery, training, etc. – costs that many banks cannot or will not cover. 

Under Section 179, the entire cost of the qualifying equipment may be written off the year it is purchased and put into use. The client may opt to own the equipment after the lease is up (at a low pre-negotiated price). 

Our clients save time and upfront cash when Lessor/Lender manages all the invoicing and necessary progress payments. This increases efficiency and progress as well as helping to alleviate many vendor-induced headaches. 

Avoid blanket liens, restrictive covenants, rate escalator clauses, compensating balance requirements, or other typical surprises in traditional lending restrictions, all while improving financial and internal performance ratios. 

Lower costs with no hidden charges, non-utilization fines or fees in fine print. Converting variable debt to fixed rate financing hedges against inflation and rising interest rates as payments remain the same for the term of the contract.