Lease Options and Benefits

Lease Options and Benefits

Determine which financing product is right for you:

$1.00 Purchase Option Lease

The $1.00 Purchase Option is the simplest lease structure and is treated as a loan for Federal income tax purposes. Generally customers pay a stream of fixed payments over the lease term. At the end of the term the customer has the option to purchase the equipment for $1.00 (only available under terms of $1.00 Purchase Option Lease).

Two advance payments are required. Quotes are valid for 30 days from the rate schedule date. After 30 days they are indexed to like-term Treasury Bills, until equipment acceptance. For the latest quotes, contact your AFS sales representative.

For every 25 basis point increase/decrease or portion thereof, (in which the adjustment will be pro-rated) in the T-Bill rate, the above rate factor will be adjusted by adding or subtracting .00012.

$1.00 Purchase Option Lease Benefits:

  • Fixed monthly payment throughout lease term
  • Customer entitled to depreciation benefits
  • Equipment Ownership: Own equipment at end of term for $1.00

Change Option Lease

Use earned equity to purchase new equipment. Credit is calculated to finance new equipment which will be financed with balance of existing lease for 36 months.

Fair Market Value Lease (Tax Lease)

  • For the latest quotes on Avid's tax lease programs, contact your AFS sales representative.
  • Terms are available for 12-36 months.
  • End of term options include:
    • Purchase for Fair Market Value
    • Return Equipment to AFS
    • Extend/renew the lease term

FMV Lease Benefits:

  • Saves Money: Lower payments than traditional loan financing
  • Investment Protection: Hedge against technology changes
  • Upgrade Flexibility
  • Entire payments deductible for tax purposes

Municipal Lease

In order to provide additional financing options to Avid's growing (U.S.) State and Local government business, including the education market in this segment, we now offer Municipal leasing to our customers. Contact Regional Sales Representative at Avid Financial Services, 800-575-4450, for additional information.

  • Municipal Leases are available for cities, states and local governments. For the latest quotes on these programs, contact your AFS sales representative.
  • Terms are available for 12-60 months.
  • At the end of the term the customer has the option to purchase the equipment for $1.00.

Municipal Lease Benefits

  • Lower payment amount then commercial loans
  • Overcomes Budgetary Constraints: Spread costs over multiple budgetary periods
  • Purchase Price Protection: $1 Purchase option at lease end
  • Eliminates lengthy bid process

The following information is required for all Avid financing:

  1. Complete credit application for all transactions.
  2. Desired lease structure and term.
  3. Equipment configuration and dollar amount.
  4. Two year's fiscal year end financial statements on transactions over $125K.
  5. Most recent interim financial statements on transactions over $125K.
  6. Personal financial statements for all Sub-S Corporation and closely held companies.