Municipal Leasing --Fire Truck Leasing--
Modular Building Leasing and Financing
Municipal Leasing- Fire
Truck Leasing-Municipal Financing-
Inside Section 1
Bond vs. Leasing
or Why Choose Lease Purchase Over Traditional Bond Financing?
Both methods of financing provide a
municipality with the opportunity to own and use an asset immediately
while payments are distributed over the asset's useful life. When
properly structured, the interest portion of both bonds and Lease
Purchase payments are also considered tax-exempt income for the
investor.
However:
Properly structured Lease Purchase
Agreements avoid being classified as debt obligations.
Costs of issuance are often
substantially less than traditional bond financing.
Lease Purchase financings are also considerably
less complex, and can be completed in a much shorter time.
Lease Purchase financing allows the
municipality an alternative source of capital, thereby expanding
access to the capital markets.