| State Government Leasing & Municipal Leasing Programs
It's really a classic problem that many of our government customers face: "No money in the budget". And with Municipal, State and Federal budgets continually tightening, it's a phrase heard with a distressing regularity. This has resulted in government departments struggling to survive year by year, fiscal period by period, with spending barriers constantly hanging over budgets.
When a critical piece of equipment is not "in the budget", many departments struggle with the fact that they often simply cannot make the purchase, no matter how important that equipment is. But that doesn't mean a dead end. What many government agencies do not realize is that is extremely simple to lease new equipment, and pay for that equipment on a monthly, quarterly or annual basis - fitting in completely with their current appropriations.
No Longer Do You Need To Pay In Advance For Equipment
With government equipment leasing programs such as those provided by LeaseBanker, funds come out of operating expense accounts, and are not booked as capital expenses, mainly because of lease agreement's in-built non-appropriation language. For Federal transactions, this is also accomplished with termination provisions. As an added plus, on an accounting-level, lease agreements do not create debt.
LeaseBanker provides equipment leasing services to the following types of organizations:
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County Governments
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Municipal Governments
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School Districts
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State Governments
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Police and Law Enforcement
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Fire Departments, both paid and volunteer
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State Health Care Facilities and Hospitals
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Universities and Community Colleges
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Military
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Correctional Facilities and Jails
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US Postal Service
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And many, many more...
Special Considerations For Federal & Municipal Leasing
For these specialized leases, we offer such benefits as zero-down payment, no deposit, a single page application (in municipal leasing), and automatic approval for all Federal Agencies, with no credit app. For these particular leases, "soft costs" such as delivery and software can be covered.
Help For Non Appropriation Clauses
Although many government agencies are hindered by statute from entering into financial commitments that extend beyond the current fiscal year, LeaseBanker provides Government Equipment Leasing programs that specifically incorporate what is known as "Non-Appropriation" language. So, in the event funds are not available for a legal reason, your lease is terminated, at which time equipment must be surrendered. For Federal leasing, a similar clause is available, which enables what is called "Termination for Convenience".
Important Differences For Federal Government Equipment Leasing
As is the common practice, federal government departments rarely enter into lease agreements with third parties, such as leasing agents or financial institutions. Assigning purchase order proceeds to third parties, however, is frequently practiced, which enables leasing to be possible. In cases such as this, the purchase order Terms & Conditions can specify a stream of payment structure, whereby payments are issued on a monthly, quarterly or annual basis. These Terms & Conditions, of course, feature the appropriate non-appropriation and termination for convenience clauses. In effect, this mirrors what is known in the business world as an "equipment lease".
Once equipment has been received and accepted, the equipment vendor is paid, and is declared to be non-liable for any non-appropriation or termination for convenience problems which may occur. The vendor is still liable to any purchase order terms which may find them in a non-performance status.
Do you have questions about our Government Equipment Leasing Programs? If so, please contact us here. FCL/LeaseFirst Inc.
5575 Poplar Ave. Suite 424
Memphis, Tennessee 38119
901-763-4080
(866) 340-7376
Fax 901-761-5862
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