Which Equipment Financing Option is Right for You? 

Choosing how to finance your equipment is an important decision. Because each customer’s situation is unique, Altec Capital offers several lease types designed to help customers build their fleet while still reaching financial and operational goals. Below, get to know Altec Capital’s leasing options and see which one might be right for you.

Fair Market Value Lease

The Fair Market Value (FMV) lease is Altec’s most popular leasing option. With the FMV lease, Altec Capital Services is able to minimize the total life-cycle cost, while maximizing the utilization of your entire fleet.

At lease maturity, you may opt to return the equipment and lease a new unit. You can also choose to lease on a month-to-month basis or purchase the equipment at its fair market value.

Advantages of the FMV lease are:

  • Lowest monthly payment
  • Fixed cost of using asset
  • Elimination of resale liability
  • Optimize the economic life of the asset

Best for customers who… want to maximize their free cash flow, want to operate newer equipment, or want to eliminate residual and interest rate risk.

$1 Purchase Option

The $1 Purchase Option, also known as a capital lease, allows you to capitalize the equipment on your balance sheet and take tax benefits associated with the equipment. This leasing option most closely resembles a traditional bank loan.

Advantages of the $1 Purchase Option are:

  • 100% financing
  • Long-term ownership
  • Variety of payment plans including monthly, annual and skip payment plans.

Best for customers who… want advantage of ownership and want to own the equipment outright.

TRAC Lease

The Terminal Rental Adjustment Clause (TRAC) lease guarantees your business a pre-determined residual price when the lease matures with a balloon payment at the end of term.

Benefits of a TRAC lease include:

  • Mitigation of interest rate fluctuations
  • Increases operating capital and free cash flow
  • 100% financing

Best for customers who… want to own the equipment outright with a lower monthly payment than the $1 Purchase Option due to the balloon at the end of the term.

About Altec Capital

Altec Capital’s focus is meeting your unique equipment financing needs. Not only does Altec Capital finance equipment, but it also helps customers manage and maintain their equipment fleet. While its core business is financing Altec products, Altec Capital also offers financing for light duty trucks and other non-Altec, third-party equipment.

Most importantly, financing with Altec Capital is easy. Altec Capital offers a single solution for all your financing needs, which means no more managing multiple banking relationships.

For more information on Altec Capital’s financing options, call (888) 408-8148 or email finance@altec.com.