The Government Leasing Experts
-- Our 27th Year!
Federal Government Leasing,
State Government Leasing
& Municipal Leasing Programs
What do you do when there's "no money in the budget?
Most administrators have probably heard that
expression, a few too many times lately. Most government agencies
“live” year-to-year, appropriation-by-appropriation, grant-by-grant, with
spending horizons that rarely cross over fiscal periods.
“It’s either in the budget, or its not…”
If not, most agencies simply can't make the purchase, no matter how critical the need. But that doesn't necessarily mean you have to walk away. Many government agencies are not familiar with how EASY it is for them to lease essential new equipment, paying for that equipment, monthly, quarterly or annually as their current appropriations allow.
Why pay in advance for essential
equipment
...that your agency will be using for years?
In
most government lease scenarios, funds come out of OPERATING accounts
and are not “booked” as capital expenses (often BIG a plus), due in part to
built-in non-appropriation language and on Federal transactions, termination
provisions. And leases do not create balance sheet “debt,” for
accounting purposes.
"Why Government Leasing Makes Sense!"
Just about any equipment for:
| Municipal Governments | Law Enforcement |
| School Districts | Fire Departments - Paid/Volunteer |
| Homeland Security | State Governments |
| County Governments | Military Installations |
| Highway/Roads Departments | Administrative Offices |
| Police - State & Local | Prisons & Correctional Facilities |
| U.S. Postal Service | Coast Guard |
| State, County & City Hospitals | Water Districts |
| Human Services | Universities & Community Colleges |
| Modular Buildings | Park & Recreation Equipment |
|
IRS, HEW, DOJ, FBI, EPA, FDA, FEMA and hundreds of others! More here about: Federal Leasing |
|
Special Considerations for Federal & Municipal Leases:
 | No Down Payments / No Deposits |
| One Page Application for municipal transactions. |
| No Financials for small municipal transactions. |
| Automatic Approvals for Federal Agencies. No credit application for Federal transactions, credit approval is automatic. |
| Soft Collateral "OK" including 100% software! (to 36 months) |
Non Appropriation,
NO PROBLEM!
Most government agencies are blocked (by
statute) from entering into financial commitments that extend beyond the
current fiscal year. Our government leases specifically incorporate "NON APPROPRIATION"
language. In the event funds are not
available for any legal reason whatsoever, the lease is terminated.
(equipment must be surrendered) Complete details are in
the "Non-Appropriation" section of the lease agreement. (please
call for details). Our Federal leases also accommodate
"Termination for Convenience" language!
Cash Flow Friendly Options Available
| Monthly, Quarterly, Semi-annual or Annual. In advance or in arrears |
| Deferred Payment Leases. Take delivery now, lease payments are deferred until the start of the next fiscal or accounting period. | |
| Step Payment Leases. Lease payment step up or down to match cash flow. | |
| Skip Payment Leases.
To match seasonal cash flow. e.g. Municipal golf course, the municipal
pool and of course, school districts!
|
Equipment That Can Be Leased to
Government Entities
Virtually any equipment qualifies-- from road
building equipment to software, fire trucks to office copiers and just
about everything in between! [FOR
EXAMPLE]
Federal Government Leasing - Some Key
Differences
The federal government generally does not enter
into lease agreements with third parties (like leasing companies or banks). Most agencies however, are
free to assign the proceeds of their purchase orders (i.e. the stream of
payments) under the purchase Terms & Conditions, to third parties like
First Capital. The Terms & Conditions of the purchase order will
indicate the "structure" of the stream of payments--whether that is
monthly, quarterly or annually and the total number of periods etc.
These structures will include the required "non-appropriation" and
"termination for convenience" language. This becomes what we would
view in a commercial environment as "the lease."
| The vendor (federal contractor) is paid in full upon delivery and acceptance of the equipment and is "insulated" from any termination or non-appropriation issues in the future, other than those specifically related to the vendor's own non-performance under the purchase order terms. |
Leasing puts most vendors (federal contractors) in a substantially better position than if they were "at risk" for all of contingencies under a typical government contract.
Indian Nations
- A Special Case
First Capital can provide funding for Indian
nations located on federal lands and/or native
Indian-owned/controlled enterprises on or off federal lands. Call for details [MORE]
Dealer Programs. Do you have distributors, VAR's, independent reps. or dealers?
[MORE]
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