Medical Division: Types of Financing

Equipment Finance Agreement (a.k.a Loan)

• Finance to Own – No Residual, No Buy Out
• Customer Gets Depreciation (Tax Code 179)
• Fixed Payments
• No Purchase Option (Full Pay Out)

Capital Lease (a.k.a $1.00 Purchase Lease/$1.00 Out Lease)

• Lease to Own
• Customer Gets Depreciation (Tax Code 179)
• Fixed Payments
• Stated Purchase Option ($1.00 OR 10%)

Operating Lease (a.k.a Fair Market Value Lease/FMV Lease)

• Lease With The Option To Buy
• Monthly Payments are Deductible Each Year
• Fixed Payments
• Fair Market Value Purchase Option – Hardware Only

UNIQUE STRUCTURES

• No-Deferrral: No payment upfront, first payment in 30 days.
• 3-Month Deferral: 1 payment upfront, next 3 at $0, then remaining months.
• 6-Month Deferral: 1 payment upfront, next 6 at $20, then remaining months.
• 9-Month Deferral: 1 payment upfront, next 9 at $20, then remaining months
• 12-Month Deferral: 1 payment upfront, next 12 at $1% of financed amount, then remaining months
• Stimulus Plan:1 payment upfront, next 17 at $1% of financed amount, then remaining 48