We can provide Financing for energy efficient equipment and projects.
The value proposition for financing projects and or equipment is that it offers businesses significant benefits and is less capital intensive. Energy project retrofitting have been estimated to add $30 per square foot to the value of properties. eMpasys is experienced in the renewable energy industry and every client renewable energy project is unique. We can provide a cost-effective solution that will conserve your working capital and increase your cash flow.
Capital / Lease Finance: The preferred lease for long-term equipment use and eventual ownership; a capital lease (finance lease) classifies equipment as being purchased and owned by the lessee, allowing the lessee to claim tax deductions on the equipments depreciation and is the best option if the leased asset will maintain its usefulness during and after the lease finance term.
Equipment Finance Agreement (EFA): A method of equipment financing that closely resembles an equipment loan except unlike an installment loan EFA’s are a fixed rate term obligation for the entire life of the loan agreement and borrower owns the equipment and the lender merely retains a security interest through the transaction. Both the depreciated value of the equipment and the interest on finance payments are tax deductible to the borrower.
Flexible “end of term” Options
$1 buy-out: One dollar ($1.00) is the purchase option amount at the end of a capital lease or finance lease. Very simply this is a fixed rate term obligation throughout the entire life of the buy-out loan and at the end of the term you pay the $1.00 purchase option amount and ownership is transfer to you.
FMV (fair market value): Purchase option at the end of an operating lease or true lease for the equipments then fair market value (FMV). The lease payments are lower then the $1 buy-out and are an operating expense (rent expense) and are tax deductible against total taxable revenues. The leased asset is not an asset on the company’s balance sheet. Therefore, this type of lease is often referred to as off-balance-sheet financing.
10% PUT (purchase upon termination): This option requires a 10%, residual payment at the “end of term”. The lessee has the option to pay a predetermined percent of the original equipment cost at the termination of the lease, or return the equipment to the lessor with no further obligation. By leaving a residual amount at the end of the lease, the monthly payment is lowered and provides your business some tax benefits.
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