Types of Leases
We Can Help You Choose The Best Lease For You
There are a variety of options when creating a lease agreement. The professionals at American National Bank can help you find the right one to fit your needs and situation. Here are brief descriptions of the leasing programs and tools that are available.
1. Operating or True Lease
This structure keeps the transaction off your balance sheet - maintaining your balance sheet ratios. Because of this, it is often the agreement preferred by auditors for statement presentation. This is also a lease to consider if one of your key metrics of success is return on assets.
2. Regular Lease
There are a variety of options offering equity position in the leased equipment and ultimate purchase by the lessee.
3. Skip Payment Option
This option allows you to make payments only in certain parts of the year and not every month.
4. Step-up Payment Option
An option for growing businesses that have an immediate need for equipment, but not yet the current cash flow to support a full lease payment. Lower beginning payments that "step up" over time helps match projected income with future expenses.
5. Master Lease
A Master Lease can act like a line of credit giving you the benefit of lower rates, one time signing and staggered delivery times.
6. Residual Flexibility
Residual value is the value of the equipment at the conclusion of the lease term. Depending on your goals and the type of program utilized, our experts can structure the agreement to help you manage payments, equipment life, tax impact and more.
7. 60 - 90 day Arrears Option
This option allows for advance or delayed payments depending on the financing.
8. Specialized Payment Schedules We can help you match payments to your business cash flow as needed.