Equipment Lease Financing You generate revenue by using equipment … not owning it.
Discover how equipment leasing can conserve cash flow and improve bottom-line performance. M&T Commercial Equipment Leasing has helped organizations, large and small, address their equipment requirements.
Structured to handle virtually any type of equipment, M&T Commercial Equipment Leasing can finance construction equipment, furniture and fixtures, energy performance equipment, commercial vehicles and manufacturing and production equipment.
How Equipment Lease Financing Works
M&T Commercial Equipment Leasing offers a comprehensive range of products, with complete flexibility to design the lease to suit your individual requirements. We are experts in providing both tax oriented leases and non-tax oriented leases, with a minimum transaction size of $250,000.
TRAC (Terminal Rental Adjustment Clause) leases for over-the-road commercial vehicles such as ambulances
Sale/Leaseback transactions that let the lessee recapture cash while retaining the use of equipment
Synthetic lease, or non-tax lease agreements, that qualify for FASB-13 operating lease treatment
Finance leases to cover the full cost of equipment acquisition, structured around payment schedules customized to the lessee’s requirements.
The Benefits of Equipment Lease Financing
In every lease transaction, we work closely with our clients to understand individual needs and lease requirements
Attractive rates that often make leasing the least expensive means of financing equipment
Conservation of cash, capital and lines of credit by diversifying financing through an additional source of capital
Fixed, predictable payments for more manageable cash flow
Tax savings through reduced preference items and depreciation penalties, and through minimizing the potential of the Alternative Minimum Tax
Off-balance-sheet financing that improves liquidity, reduces leverage and increases both ROA and ROI through a decreased asset base
Access to the latest equipment and easy upgrading or outright purchase when the lease expires.
TELP (Tax-Exempt Equipment Leasing Program)
In New York State, the Tax-Exempt Equipment Leasing Program (TELP) provides non-profit hospitals and nursing homes in New York with a mechanism for securing tax-exempt rates for capital equipment lease financing.
The program converts a traditional two-party lease and sub-lease structure into a tri-party lease and sub-lease. Under this structure M&T Credit Services, LLC retains the role of lessor, but the Dormitory Authority is lessee and the hospital becomes the Authority’s sub-lessee. The lease’s rental payments are made to the Authority but assigned to M&T Credit Services, LLC. This flow of funding and repayment qualifies as tax-exempt lending.
Because the lessor does not pay federal, state or local income tax on the interest portion of the lease payments, the lease interest rate is lowered to reflect the full tax savings and is generally reduced by about a third. For example, a taxable lease rater of 9.5 percent would be reduced to a TELP rate of about 6.0 percent.
To find out more, please send us an email, call the M&T Customer Service Center at (800) 724-2240, or contact your M&T Relationship Manager.
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