TCF Equipment Finance (TCFEF) offers a broad selection of leasing and equipment financing products to meet your specific needs. The majority of these products are listed below. We can also customize products to help design a solution tailored to fit your exact needs.
Tax Lease
Leases in which TCFEF retains the tax ownership and related depreciation on the equipment with the lessee receiving the benefits through lower lease payments.
TRAC Lease
A TRAC lease is specifically designed for commercial over-the-road vehicles and trailers. This lease contains a Terminal Rental Adjustment Clause (TRAC) that states at the end of the Lease term the vehicle will be sold (to the lessee or a third party) for its then Fair Market Value. Pursuant to the Terminal Rental Adjustment Clause, if the net proceeds received by the lessor upon sale of the vehicle were in excess of the TRAC amount (residual) established in the lease such excess proceeds would be paid to the lessee. Conversely, if the vehicle is sold for less than the established TRAC amount, the lessee is required to reimburse the lessor for the short fall. This is the most common type of lease for business owners who want the option of buying the vehicle for a pre-determined price at the end of the lease.
Operating Lease
A lease in which the lessor owns the equipment and leases it to the lessee for a term usually between 36 and 84 months. An Operating Lease may provide the lessee with off-balance sheet financing if the lease meets certain accounting criteria. At the end of the initial term, the lessee may return the equipment to the lessor or re-lease the equipment for another specified term.
Lease Purchase/Finance Lease
A lease in which equipment can be purchased for a predetermined price upon lease expiration. These leases can be structured with either purchase options or purchase agreements, and depreciation benefits are typically transferred to the lessee.
$1 Purchase Option Lease or Equipment Loans
The $1 purchase option lease and equipment loans are structures by which an equipment purchase is financed on a fixed rate basis. The Lessee/Borrower retains the tax ownership of the equipment and related depreciation and is the owner of the equipment.
Vendor Leasing/Financing
Leasing programs designed for equipment manufacturers, distributors and dealers to increase sales by providing their customers with equipment financing through TCFEF.
Interim Funding/Progress Funding
A process where a payment for equipment to a vendor (typically less than the total amount financed) under a transaction is authorized by the Lessee/Borrower (“Customer”) and remitted to the vendor prior to Customer’s final acceptance of the equipment.
