As Municipal budgets become more strain, grant money diminishing and infrastructure in need of replacement, Municipalities across the country have turned to Municipal Lease Purchase Financing as a mean of acquiring capital equipment. The following are just some of the reasons why a Municipality would consider Lease Purchase Financing through Merrimac Capital Services.
100% Financing - Lease Purchase Financing offers the Municipality the ability to finance 100% of the equipment with no large deposits required. Transactions as low as $5,000 with no ceiling. New, used, titled or untitled equipment.
Non-Appropriation Clause – The municipal lease purchase documents contain the standard Non-Appropriation verbiage.
Obtain the equipment NOW! - Often a lease payment can be negotiated to fit within the current operating budget when a capital expenditure is out of the question. Why deprive the department of that much-needed equipment when they can get it all NOW at today’s pricing, not tomorrows inflated price.
Application Process - Typically, transactions up to $50K can be accomplished with just a simple 1 page Credit Application. Since many Municipalities reflect their annual reports on their web page, even larger transactions can be easily accomplished.
Payment Programs - Terms can be monthly, quarterly, semi-annual or annual. Other programs such as, seasonal payments, smaller payments up-front or payments conforming to the present budget situation can be explored. Payment terms typically range from 24 months to 60 months (longer terms are available, where applicable).
Simplifies Budgeting - Financial projections are simple because the lease payments are fixed for the term of the lease. Lease payments don’t float with the rising cost of money.
Preserves Cash - Lease Purchase Financing will let the Municipality/Public Institution acquire and make use of the equipment NOW without depleting their cash reserves. By taking advantage of our leasing program, it allows the Municipality to preserving their bank lines, utilize another source of credit and utilize their bonding power for projects such as School buildings, parks and utilities, roofs, renovations, etc.
Buy Out - Provide the standard Muni finance transaction and also an FMV buy out.
Rental Program - Depending on the equipment and terms, a rental can be made available to a Municipal entity.