Finance Equipment for your business through Providence Capital and receive our top rated service and a financing plan tailored to your needs. We are experts in providing equipment financing solutions to businesses across the U.S. We use our decades of industry experience to offer a smooth finance process every step of the way.
The Payment Calculator provided on this page is to be used as a tool for budgetary purposes. Monthly payments may vary and are subject to credit approval.
Also known as a true lease or operating lease. Under this type of arrangement a lessee has the option to buy the equipment at the end of the base term for the “fair market value”, which generally equiates to a minimum of 10% of the purchase amount. This type of lease allows the customer to deduct the full monthly lease payment as a rental expense, thereby reducing their tax liability. FMV Leases are associated with off-balance sheet financing.
The lessee will have the option to purchase the equipment for 10 percent of the original purhcase price. Monthly payments will be higher if a customer chooses a 10% purhcase option vs a fair market value option and will have a lower payment vs a $1.00 purchase option.
The Lessee will have the option to purchase the equipment for 3.5% of the original amount. Generally the customer will pay a higher lease payment than a 10% purchase option, but will have a lower lease payment than a $1.00 purchase option
A $1.00 purchase option is a capital lease. The advantage of a $1.00 purchase option is the transfer of ownership once the lesse makes their last lease payment.
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Matt Abbott
(714) 985-6212
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