FINANCE OPTIONS

Matthews Buses Commercial is pleased to help you with your Finance Needs!

Lease and Loan Product List:

Below is an array of finance options available to you;

When structured correctly, financing equipment helps businesses maximize and better forecast cash flow.

• Potential tax benefits
• Off-balance sheet finance options
• Payment schedules that meet cash flow requirements and more…

Equipment Loans or $1 Purchase Option Lease

The $1 purchase option lease and equipment loans are structures by which equipment purchases are financed on a fixed rate. The Lessee/Borrower retains the ownership of the equipment. This is a good option for equipment with a long useful life and the equipment may be depreciated on your balance sheet.

Terminal Rental Adjustment Clause (TRAC) Lease

A TRAC lease is designed for commercial over-the-road vehicles and trailers. At the end of the lease, the vehicle is sold (to the lessee or a third party) for a predetermined residual value. This is a good option for businesses that want to buy the vehicle for a predetermined price at the end of the lease.

Operating Lease

The lessor owns the equipment and leases it for a term usually between 36 and 84 months. This lease may provide the lessee with off-balance sheet financing if it meets accounting criteria. At the end of the term, the lessee may return the equipment to the lessor or re-lease it for another specified term.

Lease Purchase/Finance Lease

A lease in which equipment can be purchased for a predetermined price upon lease expiration. This may be structured with either purchase options or purchase agreements and depreciation benefits are typically transferred to the lessee.

Walk-Away /Closed End Lease

A Walk-Away lease is where the customer leases a vehicle for a specified period of time. At the end of the lease the customer must return the equipment to the dealer. The customer may have the option to re-lease the vehicle, but they need contact the dealer and bank before the lease is up to discuss this option.

* This information does not constitute tax advice. Consult with your tax advisor to determine how to use equipment financing to take advantage of expensing and depreciation tax savings or visit www.irs.gov.