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Primex
Leasing
Corporation
Suite 291
2701 Troy Center Dr.
Troy, MI 48084
www.primexleasing.com
Phone: 248.244.8400
Fax: 248.244.8181
®
2002, Primex Leasing
all rights reserved
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PRODUCTS
Primex Leasing is a full service leasing company serving
the needs of businesses and municipal entities. We offer
a complete array of services designed to meet the specific
needs of the customer. In addition to the lease products
below, Primex will work with you and your advisors to develop
customized programs tailored for your specific needs and
circumstances.
OPERATING LEASES
Operating leases provide lessees the opportunity to achieve
specific accounting, tax and financial reporting objectives.
Also known as "off-balance sheet financing", the
lessee does not capitalize the equipment on its balance
sheet and treats all payments as rent expense. The
benefits of off-balance sheet treatment include no impact
on the company's debt-to-equity ratio and, quite often,
lower income tax liability.
TRUE LEASES
True leases are typically structured with a "Fair Market
Value" purchase option at lease expiration. This type
of agreement is most attractive in cases where the lessee
does not want the equipment at the end of the lease, wishes
to avoid technological obsolescence, expects the fair market
value at lease end to be low, or wishes to transfer the
tax benefits of ownership to the lessor in exchange for
lower lease payments.
FINANCE LEASES
Finance leases are most attractive in cases where the lessee
wants the tax benefits of ownership or expects the equipment's
value at lease end to be high. These leases are structured
as equipment financing agreements with purchase options
typically ranging from $1.00 up to 20% of the original cost
of the equipment. At expiration of the lease, the lessee
may purchase the equipment for the stated purchase option
amount.
MUNICIPAL LEASE/PURCHASE AGREEMENTS
State, county and local governments are eligible for tax-exempt
lease/purchase financing. Under the U.S. tax code, lessors
need not include interest income from municipalities for
federal tax purposes. This allows the lessor to pass along
this benefit to governmental agencies in the form of significantly
lower payments. Through a "non-appropriation of funds"
clause, municipal customers can fund equipment acquisitions
over time without the need for voter approval as is the
case when incurring debt extending beyond the current fiscal
period. The primary benefit is the ability to acquire needed
equipment now rather than waiting for the next budget year.
MINORITY LEASING
Primex has the ability to offer minority leasing credits
to its customers if desired through a relationship with
a minority leasing firm. The minority partner provides the
debt portion of the lease while Primex provides the equity
portion. Primex's customers have the ability to receive
minority credits while at the same time enjoy the comfort
of knowing that Primex will be the lessor and title holder
of the lease and all negotiations before, during, and after
lease inception will be negotiated directly with Primex.
If minority leasing is important to your firm please contact
Primex for further information.
OFF-LEASE EQUIPMENT
While providing its customers with attractive programs and
products for leasing new equipment, Primex can also offer
significant savings by providing previously leased equipment
other customers. Off-lease equipment provides a low cost
alternative for bridging short-term needs or while waiting
for new technology to reach the market.
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