Capital Lease |
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Lease-to-Own |
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| 1. | |
A capital lease is ideal when long-term ownership of the asset is the goal. | ||
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| 2. | |
Lessee makes 24-60 monthly payments
and then has the option to purchase the asset at the end for $1.00 to 10% of the original equipment cost. |
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| 3. | Capital leases, like bank loans, are evident on the lessee's balance sheet. | |||
| 4. | Capital leases take advantage of IRS Section 179 allowing businesses to write off up to $112,000 of equipment in the year it is purchased. | |||