Finance / Leasing Options

FINANCE / LEASING OPTIONS

Equipment Financing and Leasing

Derix Capital Finance understands how important equipment is to your operation. It doesn’t matter what you do, having the optimal fleet is essential to maximizing profit. When you need to acquire equipment or refinance, we have flexible structures designed to give you access to the capital you need to bring your fleet to the next level. We have partnered with the best private lenders and equipment-focused banks in the industry to offer financing from $50,000 to over $50,000,000.
There are a wide variety of repayment structures you can choose from when acquiring specialized assets.

Types of Equipment Finance

Term Loan
A term loan is debt financing with principle and interest payments that amortizes generally from 36 to 84 months.  These loans can be fully amortizing, or in some cases, an arrangement for balloon payment can be made.

  • Application only up to $350,000
  • Start-ups considered
  • We can even arrange for a payment structure to accommodate seasonality

Capital Lease
A lease in which the Lessor (leasing company) gives exclusive rights to a Lessee to use and possess its equipment for a specified period.  Capital Leases typically have a $1 purchase option at the end of the lease and are considered to be debt for accounting purposes.

Any of the following conditions being met in an equipment lease would make it a Capital Lease:

  • Lease term is 75% or greater of the asset’s useful life
  • Lease contains a purchase agreement that is less than market value
  • Lessee gains ownership at the end of the lease period; or,
  • Present Value of lease payments is greater than 90% of the asset’s market value

TRAC Lease
A TRAC Lease (terminal rental adjustment clause) is specific to over-the-road titled vehicles and equipment (trucks, trailers, truck cranes, etc.).  In a TRAC lease, the lessor and lessee agree upon a defined residual value before the lease begins that is guaranteed by the Lessee.  The Lessee has the option to purchase the equipment at the end of the required lease term for the agreed upon residual value or return the asset to the Lessor.

True Lease / Operating Lease / Tax Lease
A True Lease is also referred to an operating or tax lease.  It is an off-balance sheet lease, and lessee is required to make monthly rental payments to the lessor.  This is beneficial for companies only needing the equipment for a certain amount of time, or is need of minimizing the amount of debt shown on its books.  At the conclusion of the true lease term, the lessee has the option to return the equipment, renew the lease and keep the equipment, or purchase the equipment at Fair Market Value (FMV).

Sale Leaseback
If you are looking for ways to free up the equity you have in your equipment without divesting it, the sale leaseback is your opportunity. We can arrange a sale of your existing equipment, where you gain access to its equity, and then lease it back until you’re ready to upgrade and move on.

For more information about all our equipment leasing and financing options, contact us today. Our associates can answer questions to help you decide on the best options for financing your next equipment purchase. They can even help you start an application over the phone.