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When structured correctly, financing equipment helps businesses maximize and better forecast cash flow.  Our finance professionals will take the time to understand your business and design a finance program best suited for your situation:

  • Potential tax benefits*
  • Off-balance sheet finance options
  • Payment schedules that meet cash flow requirements
  • And more!

Below is an array of finance options - we can also design a solution tailored to your needs:

Equipment Loans or $1 Purchase Option Lease

The $1 purchase option lease and equipment loans are structures by which equipment purchases are financed on a fixed rate. The Lessee/Borrower retains the ownership of the equipment. This is a good option for equipment with a long useful life and the equipment may be depreciated on your balance sheet.

Tax Lease

This is a good option for companies that acquire new equipment every few years. Called a Tax Lease because it usually qualifies as a tax deductible expense. TCFEF retains the tax ownership and related depreciation on the equipment with the lessee receiving the benefits through lower lease payments.

Terminal Rental Adjustment Clause (TRAC) Lease

A TRAC lease is designed for commercial over-the-road vehicles and trailers. At the end of the lease, the vehicle is sold (to the lessee or a third party) for its Fair Market Value. If the net proceeds of the sale are in excess of the TRAC amount (residual), the excess is paid to the lessee. Conversely, if the vehicle is sold for less than the residual amount, the lessee reimburses the lessor for the shortfall. This is a good option for businesses that want to buy the vehicle for a pre-determined price at the end of the lease.

Operating Lease

The lessor owns the equipment and leases it for a term usually between 36 and 84 months. This lease may provide the lessee with off-balance sheet financing if it meets accounting criteria. At the end of the term, the lessee may return the equipment to the lessor or re-lease it for another specified term.

Lease Purchase/Finance Lease

A lease in which equipment can be purchased for a predetermined price upon lease expiration. This may be structured with either purchase options or purchase agreements and depreciation benefits are typically transferred to the lessee.

Vendor Financing

Lease and loan programs designed for equipment manufacturers, distributors and dealers to increase sales by providing their customers with equipment financing through TCFEF. To find out more visit our Vendor Programs section.

Interim/Progress Funding

A payment process for equipment to a vendor (typically less than the total amount financed) authorized by the lessee/borrower (customer) and remitted to the vendor prior to customer's final acceptance of the equipment.

Use our expertise. We offer sound guidance, flexible structuring and competitive financing. Call today to find out more.

* This information does not constitute tax advice. Consult with your tax advisor to determine how to use equipment financing to take advantage of expensing and depreciation tax savings or visit www.irs.gov.