What Is Lease Purchase Financing
Learn more about how lease purchase financing works as an effective tool for dealers and departments to put more equipment in the hands of those who need it most.
Our financing experts can help you get the equipment your municipality, fire, EMS or public works department needs now. No matter what you need, Republic First National is here to help. Working with a member of our financing team will be like having a personal guide walk you through the lease purchase process every step of the way.
Here are just a few things we can help you finance:
Keep in mind lease-purchase financing is not a rental plan. You build equity with each payment and own the equipment at the end of the repayment term.
Advantages of lease purchase financing are:
Lease purchase financing is designed for municipalities or a public agency to finance equipment and real property. Once the purchase of an asset is acquired with lease purchase financing you make periodic lease payments, which have a principal and interest components and a $1.00 buyout at the end of the leasing terms.
For municipalities, lease purchase financing is considered tax exempt. This allows us to provide interest rates that are below standard commercial financing rates. We, as the Lessor, are exempt from paying federal income tax on the interest so we pass those savings on to you in the form of lower interest rates
Municipal lease purchases for municipal departments are characterized by a non-appropriation clause which specifies that the lease may be terminated in the event funds are not made.
In most states municipal lease purchase financing has no impact on your credit availability. Only the lease payment is included in your yearly budget so it does not affect how you allocate your yearly funds and no voter approval is required.
Municipal leasing is one of the most cost effective ways to finance equipment. You are able to cut costs since municipal leasing does not require a bond election or the long-term administration of the bond. And since there is no bond issue you also benefit savings on bond underwriting costs.
If you have a large project at Republic First National we are here to get you the financing you need today. We also have an application only option available to municipalities with the following terms:
Lease purchase financing has a simple and hassle-free credit process!