Lease Information

You’ll be pleasantly surprised! You’re a growing business and need to finance machinery that won’t saddle you with high fees, exorbitant late charges and contracts only a lawyer could love. The solution? Intech Funding. Here’s why:

• Early Pay-off — Intech offers one of the most customer-friendly early pay-off provisions in the industry.

• Simple One Page Lease — Our contract is one page (front and back), written in
standard English.

• No Blanket Liens —The security interest is in the leased equipment only.

• 10-Day Payment Grace Period — We always give a 10-day grace period on payments.

• No Hassles — Our leases aren’t subject to annual renewal and/or call provisions.

Use our money to make money!

Leasing is the largest single source for equipment financing. In fact, more than 80 percent of all Fortune 500 companies lease their machinery because they can free up working capital and lines of credit by keeping liabilities off their balance sheets. Leasing is a more effective means of controlling a large amount of equipment with a minimal cash outlay.

There are two principal types of leases:

Finance Leases (Lease to Own)

These typically allow the buyer to own the equipment at the end of the lease for just $1.00. Advantages include:

•  Low monthly payments.

• Tax benefits: Many customers qualify for tax incentives under Section 179 of the IRS Tax Code plus depreciation and interest expense. Always check with your accountant to verify how these tax benefits will affect your company.

• Leaves your bank line of credit available for other uses.

• Low down payments — Preserves your working capital because leasing requires no down payment and provides 100% financing including ancillary costs such as shipping and installation. Operating capital is saved for revenue-generating investments.

• Equity investment — At the end of the lease you own the equipment for $1.00 or the specified amount.

• Longer terms with fixed rates — Bank loans typically use floating rates and these can be called in anytime during the loan. Leases offer fixed payments through the entire term and are not callable on demand or subject to annual renewals.

• Simplified paperwork.

Operating Leases

These leases usually have purchase options of 10 percent, 20 percent, or fair market value. At the end of the lease, you have the option to send the equipment back or purchase it for the stated purchase option. Advantages include:

• Low monthly payments.

• Tax benefits: Payments can be written off as an operating expense for tax and accounting purposes.

• Off balance sheet treatment possible.

• Minimizes risk of ownership.

Always check with your accountant to verify tax or accounting issues and any tax benefits.