Typically 3 types of leases are offered for this industry.

1. 10% or Fair Market Value Purchase Option (whichever is greater).
   This means, at the end of your lease, you have the right to purchase the equipment for 10% of the original purchase price or fair market value whichever is greater. This is considered a true operating lease allowing a 100% business write off over the term of the lease period.
   **Note**
   This equipment historically is worth at lease 50% of the original cost after 5 years. Your liability at lease end could be half of the original cost. Example: $35,000.00 cost, 50% fair market value, your buy-out could be as much as $17,500.00
2. 10% Purchase Option Lease
   Easily the most popular of all equipment leases. When your lease period has expired, you can purchase the equipment for 10% of the original cost. Example: $35,000.00 purchase price, 10% buy out is $3,500.00 (not available in all states). Consult your CPA for the tax benefits.
3. $1.00 Purchase Option
   IRS views this lease as a conditional sales contract. You have the option to purchase the equipment for $1.00 at the end of the lease period. Normally, this payment is much higher than a 10% or fair market option lease (this lease is not offered in all states). Tax benefits are much less than the other leases.
   
   All of the leases we have described have terms from 12 months to 60 months. Start-up businesses sometimes require a 10% or 20% down payment. Existing or start-up businesses require the first and last payments in advance.

Lease Application