For Occasions When Ultimate Equipment Ownership Is Not Desired

From time to time, a municipality will want the flexibility to lease an asset that it will eventually return, because of the equipment type, useful life, or intended use. ePlus offers a flexible lease structure called a true or operating lease, where title remains with the lessor.

While interest rates are higher than for their tax-exempt equivalents, part of the increase in the interest rate will be offset by the fact that the entire cost of the asset may not be fully amortized over the life of the lease. Just as with a tax-exempt lease, the process for lease approval and execution is far simpler than for a bond, and the payments are still subject to a non-appropriation of funds clause.

Flexibility is a key feature of municipal leasing, as much with taxable leases as with tax-exempt. If the government’s need for the equipment changes so that at the end of the lease it wishes to keep the equipment, then the lease can be extended or a buyout of the equipment can be negotiated.

Call us today at 703-984-8037, or email muni@eplus.com to see how ePlus can help you meet your mission-critical requirements.