With nearly 30 years of finance experience, Walker Finance knows that one standard type of financing does not fit every equipment purchasing decision. That is why we have multiple options.

Simple Finance Terms: We offer fixed finance terms at competitive rates available to qualified buyers for up to 60 months. We have standard terms, but we also offer deferred payment plans, seasonal payments, and other customized terms that fit for your business needs. Our experienced Finance Rep will work with you to find the plan that is right for you.

Lease Terms: Typically, lease terms are for up to 60 months with $1.00, 10% and FMV buyouts.

Government Financing: Our experienced Governmental Specialists will review all finance and lease options available to you.

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Purchase Option or Buyout

Buyout/Purchase options are determined before the lease begins. They outline your final financial obligations at the end of the lease.

$1 Buyout: Probably the most common lease buyout, the lessee purchases the equipment for $1 at the end of a capital lease and also enjoys the depreciation tax benefits of owning the equipment.

10% Buyout: With this contract, at the end of the lease term the lessee would purchase the equipment for 10% of its original purchase price. The 10% Buyout results in a lower monthly payment than the $1 Buyout, but has the lump sum final payment at the end of the lease.

Fair Market Value (FMV) Purchase Option: At the end of the lease term the Lessee would be able to purchase the equipment for its then Fair Market Value, continue to lease, or return the equipment. Often, this buyout can result in lower monthly payments. Generally, the lessee would list the payments as an operating expense and would not depreciate the asset. Many companies use this structure as a financial planning tool and a means to avoid technological obsolescence.

Why Government Lease Purchase?

Quick Delivery: Lease Purchase financing may allow the Government Entity to acquire the equipment they need more quickly than other means and to spread the cost over multiple budget years.

Flexible Terms: The payment type can be tailored to suit the needs of each government. Annual, semi-annual, quarterly and monthly payment intervals are available with terms extending to the useful life of the equipment. Deferrals, down-payments and advanced payments can also be arranged for the benefit of the government entity. Up to 100% of equipment cost can be financed, as well as “soft” costs such as freight, installation, and training.

Early Purchase Option: If funds become available; the government may buy-out at any time after the completion of the first fiscal year.

Non-Appropriation: Government leases are characterized by a Non-Appropriation clause which specifies that the lease may be terminated in the event funds are not made available in subsequent fiscal years.

Nothing Down: Under most payment plans, no down payment or security deposit is required. However, structuring the lease with advance payments may lower the net cost of financing to the lessee.

$1.00 Buyout: Lessee owns the equipment at end of lease term. Most government leases are structured with $1 Buyout.

Government Lease Rentals: A government lease rental is NOT A MONTH TO MONTH CONTRACT, but a fixed length financing in which the equipment will be paid for by the leasing company, and will revert to the leasing company at the completion of the contract term. Additionally, with municipal lease rental the interest paid by the lessee is not tax exempt to the investor. The result of this is that a rental could have higher payments than a municipal lease purchase due to the higher interest rates. However the advantages of not having to own outdated technological equipment may make this an attractive alternative.

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