Equipment Leasing vs. Equipment Financing
Fair Market Value Lease
A fair market value lease is a traditional lease agreement with lower monthly payments than a buyout. You have three options when the term of your equipment lease ends:
- You can purchase your leased equipment at fair market value
- Renew the equipment lease
- Return the equipment—an excellent option for customers expecting a decrease in the value of their leased equipment.
Dollar Buy-Out Lease
With this equipment lease financing option, at the end of your lease term, you “buy” your equipment for just a $1. This is an attractive option for companies who know their equipment will not lose value and are looking to keep their equipment at the end of the lease.
High Cost Equipment
Five Point Capital offers commercial leasing for large equipment purchases over $100,000. Many banks will include equipment leases on your business available credit and reduce your credit line limits accordingly. By doing business with Five Point Capital, your equipment leases won’t affect your available bank credit.