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Alliance Financing Group has a "Finance Affiliation Agreement" with The Ag Dealer Ltd.
Terms & Structures
Terms are available from 24 to 66 months for most types of equipment. There are several different types of lease structures available.
Stretch Lease
This is the most popular type of lease provided by Alliance Capital Leasing. In this type of lease, the contract is structured as a true "Fair Market Value" lease, however, the contract provides for a fixed, guaranteed "Early Purchase Option" that can be exercised by the customer, after a specific number of payments. Here are the most common terms:
| Total Term |
Early Purchase Month |
Early Purchase Amount
(percent of original equipment cost) |
| 27 months |
24th month |
10% |
| 39 months |
36th month |
10% |
| 52 months |
48th month |
10% |
| 66 months |
60th month |
10% |
Other terms and purchase options are available.
Full Pay-Out Lease
In this type of lease, after the end of the term, the customer can purchase the equipment for a nominal amount; for example: $10 or $100. This form of lease, while once popular, is being used less and less by businesses, as the monthly payment is of course higher than with a Stretch Lease, and many accounting and tax professionals are advising businesses to avoid this type of contract.
Fair Market Value
Because this type of lease does not have a fixed purchase option, it is designed for a customer that truly does not want to own the equipment, but would rather return, upgrade, or continue to lease the equipment at the end of the term. Depending on the type of equipment, and its anticipated "market value" at the end of the proposed term, this type of contract can provide the lowest payments. This type of lease is most ideally suited to technology equipment. Note that if the customer wants a combination of a lower monthly payment and a guaranteed purchase option, then a Stretch Lease provides the best
8 Reasons to Lease |
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