There are compelling business reasons for your company to lease equipment instead of owning it. Leasing frees up cash for your business by saving you depreciation, maintenance and disposal costs. Additionally, there could be tax advantages: lease payments may be tax deductible as a business expense (please consult your tax advisor).
Frost can offer your business 100% financing with no down payment requirement on new or used equipment such as:
- manufacturing equipment
- medical and dental equipment
- construction machinery
$50,000 is the minimum loan amount.
Frost offers a variety of leasing options that make it easy for your business to acquire the equipment it needs, when it needs it.
- With a Capital Lease, the lessee owns the equipment and therefore takes depreciation. It offers 100%, fixed-rate financing, with terms ranging from two to 10 years, depending on the economic life of the asset.
- A Tax Lease is also known as an operating lease. Payment is considered rental expense, not a loan payment, and is fully tax-deductible. At the end of the term, you have a residual position and an option to purchase the equipment at fair market value. There’s no obligation to buy the equipment at the end of the lease term.
- A TRAC Lease (Terminal Rental Adjustment Clause) is designed for commercial vehicles and has the advantages of a Tax Lease, plus a fixed-purchase option at the end of the term.
- A Municipal Lease provides a financing option to meet specific needs for government entities.