PRODUCTS
Scandia Capital Partners offers virtually any financing product available in the USA. The financing product descriptions below spend much more time discussing tax advantaged leases than loans because we are asked much more often to provide that product. Most Customers understand loans quite well, as that is likely one of their bank's only products.
Through leasing, Scandia typically will finance 100% of the equipment cost and also fund all progress payments required in the Sales Agreement. This makes acquiring equipment listed in the next section extremely easy and convenient. This will also keep your valuable working capital available for other uses and unexpected surprises.
Lease Purchase
A Lease Purchase is really a loan with a $1.00 purchase option. In many states, it allows us to finance 100% of the cost of the equipment and pay the associated sales tax with each rental…not in full at lease inception.
- Normally 100% financing
- Typically carried “on balance sheet” by Customer
- Rate locked for term
- Customer depreciates the equipment
- At the end of the term, Customer may buy the equipment for $1.00
Capped Fair Market Value Lease (Operating Lease)
This is our most popular product. This option allows you to buy the equipment at the end of the term for a maximum percentage of cost. Below are some other highlights.
- Normally 100% financing
- Typically carried “off balance sheet” by Customer
- Very low monthly rentals
- Unlike depreciation, rentals are usually fully tax-deductible (manage Alternate Minimum Tax)
- Capped options range from 15% to 30% of the cost of the equipment
- Scandia will depreciate the equipment and, in exchange, offer a lower effective interest rate to you.
- At the end of the term, Lessee may;
- Buy the equipment for fair market value (FMV) not to exceed the agreed upon Capped Amount (%)
- Return the equipment
- Lease the equipment for an additional 18 – 36 months
Standard Loan
- 100% financing often available
- Fixed or float rates
- Monthly, quarterly, semi-annual or seasonal payments
- Level payments available
- Fixed principal plus interest loans available
- Most often we will need to pay 100% of applicable sales tax at the inception of the loan.
- Customer depreciates equipment
- “On balance sheet” treatment by Customer
Fair Market Value Lease with an Early Buy Option (EBO)
Nearly the same structure as the capped FMV but with a fixed purchase option near the end of the term of the lease.
- Normally 100% financing
- Typically carried “off balance sheet” by Customer
- Very low monthly rentals
- Unlike depreciation, rentals are usually fully tax-deductible (manage Alternate Minimum Tax)
- A fixed purchase option is agreed upon at lease inception
- Scandia will depreciate the equipment and, in exchange, offer a lower effective interest rate to you
- At the end of the term, Lessee may;
- Buy the equipment for a stated amount at an agreed upon date.
- Return the equipment
- Lease the equipment for an additional 18 – 36 months
Fair Market Value Lease (FMV/True/Walkaway Lease)
- Normally 100% financing
- Typically carried “off balance sheet” by Customer
- Very low monthly rentals
- Unlike depreciation, rentals are usually fully tax-deductible (manage Alternate Minimum Tax)
- Scandia will depreciate the equipment and, in exchange, offer a lower effective interest rate to you
- At the end of the term, Lessee may
- Buy the equipment for fair market value
- Return the equipment
- Lease the equipment for an additional 18-36 months
