Discount Capital Corp.Commercial Asset Based Financing
"Leasing our equipment saved us thousands in taxes!"
Leasing Terms & Defintions
Payments made by the leese at the inception of a leasing transaction.
A breakdown of periodic loan payments into two components; a principal portion and an interest portion.
The amount shown as an asset on a balance sheet. Based on historic cost (the amount paid for the asset when it was purchased) and reflecting accumulated depreciation, book value often differs from market value.
A certain interest rate that is used to bring a series of future cash flows to their present value in order to state them in current or today's dollars. Use of a discount rate removes the time value of money from future cash flows.
A lease used to finance the purchase of equipment; not a true lease. Finance leases are generally considered to be capital leases from an accounting perspective and non-tax leases from a tax perspective.
Fixed Purchase Option
An option given to the lessee to purchase the leased equipment from the lessor on the option date for a guarenteed price. Both the date and the price must be determined at the inception of the lease.
Initial Lease Term
The original predetermined length of a lease contract.
Installed Purchase Agreement
A capital lease in which the title of the equipment automatically transfers to the lessee at the end of the lease term.
The amount of interest, usually expressed as an annual percentage, to be paid by a debtor on borrowed funds.
A contract through which an owner of equipment (the lessor) conveys the right to use its equipment to another party (the lessee) for a specified period of time (the lease term) for specified periodic payments.
A continuing lease agreement whereby additional equipment can be added from time to time merely by describing that equipment in a new lease schedule executed by the parties. The original lease contract terms and conditions apply to all subsequent schedules. A master lease is essentially a line of credit to draw from over time in order to purchase equipment.
A rental agreement in which all costs in connection with the use of equipment are to be paid by the lessee, including taxes, insurance and maintenance.
Turn your existing assets into financial collateral while still using & keeping possesion of the equipment.