Financing Options
Print this page Wells Fargo Financial Capital Finance provides equipment manufacturers with co-branded finance programs to help increase sales of your equipment through your dealer base with convenient and competitive financial merchandizing. Below we have highlighted some of the contract options that help to make leasing such an attractive option for businesses.
- $1.00 buyout leases This option is also known as a conditional sales contract which allows the customer to own the equipment at lease end for $1.00. This agreement is basically a loan.
- Equipment Finance Agreements (EFA) An EFA is a fixed-term obligation with equal monthly payments, where the borrower is the owner of the equipment and the lender has a security interest in the equipment.
- Fixed-purchase option leases This is an option that allows the customer to purchase the equipment at the end of the lease term at a fixed percent of the original purchase price. A typical fixed purchase option is 10%.
- FMV leases This is an option where the customer may purchase the equipment at the end of the lease term for the fair market value of the equipment.
- Operating leases when the lessee treats the lease as an operating lease, neither the leased asset nor the lease liability appear on the lessee's balance sheet, and the lessee expenses the lease payment.