Acquiring additional equipment for your business can be a capital-intensive project tying up funds that must be kept available for advertising, overhead and reserves. VFS has money available to invest in your business. Businesses of all types and all sizes count on us for leasing programs for all of their business equipment needs. Can we be of service to you?
Our company provides leasing and financing for all types of capital acquisitions. Our clients include many of the nation’s finest companies, each of which decided to lease for the same reason: Profit. Leasing is a great way to have the tools you need for profit while keeping your working capital working for you.
We offer unmatched service and creativity to help you reach your business goals.
Clients/Asset Profile:
We seek opportunities to support our clients in all phases of growth, from start-ups to well established enterprise level corporations.
⦁ Have well developed, comprehensive business plans with compelling competitive advantages
⦁ Have assembled strong management teams with extensive experience, and proven records of success
⦁ Will provide personal guarantees from above if necessary
⦁ Are well positioned in their target markets for rapid revenue and profit growth
We seek to finance assets that:
⦁ Are mission critical
⦁ That generate revenues, or provide cost savings, that are more than sufficient to support the lease payment
⦁ Are state of art and are part of the client’s competitive advantage equation
⦁ Are manufactured and marketed by quality suppliers with financial stability, a history of quality products and that have many satisfied clients of similar products
⦁ Have long expected useful lives and well-established secondary markets
Finance Lease (also called a “Capital Lease” or “Conditional Sale” or “$Buck out”)
The finance lease combines some of the benefits of leasing with those of ownership. Payments are spread over a period of several years and often represent the full value of the equipment.
The advantage of a finance lease is that you have the opportunity to own the equipment at the end of the lease, generally for a minimal payment, such as $1.00, or for a small percentage of the original equipment cost.
True Lease (also called a “Tax Lease”)
Under a true lease, the lessor is the legal owner of the equipment. For that reason, this type of arrangement can be particularly attractive for companies and professional practices acquiring equipment that is vulnerable to technological obsolescence, such as computers.
A true lease gives you a lower monthly payment for a given piece of equipment than a finance lease would, and in some cases, your business can claim the lease payments as tax deductions.
You have three options at the end of the lease term. You may purchase the equipment for its fair market value, continue to lease it, or return the equipment to VFS.
Operating Leases:
This form of financing consists of a true (tax) lease with a shorter term than economic useful life of the Equipment. To qualify as an operating lease the structured financing must satisfy FASB13 Accounting Standards for Operating Leases with particular emphasis on the 90% test where the Net Present Value (“NPV”) of the rental stream, when discounted at the Lessee’s incremental borrowing rate, must be less than 90% of the original equipment cost. VFS, as Lessor, depreciates the Equipment, passing on the economic benefit to you as Lessee in the form of lower monthly payments which you can expense over the life of the Lease.
State and Local Government (SLG) Lease
VFS makes this type of lease available to state and local governments for tax-exempt equipment leasing and purchase financing. The SLG lease provides an alternative to other methods that municipalities use to acquire equipment, such as cash purchases or bond referendums.
Because the interest income we derive from such leases are sometimes exempt from federal income taxes, we may be able to offer lower rates through SLG leases, making this a lower-cost way for municipalities to acquire equipment.
Skip Lease
A skip lease has a repayment schedule that includes months when no payment is made (and no penalty is assessed). Ideal candidates for this type of lease are organizations that need a flexible repayment schedule such as seasonal businesses (agricultural or recreational services firms, for instance) and school systems.
Step Lease
Step leases feature payment amounts that vary according to a pre-determined schedule. The payments increase or decrease – or both – during the term of the lease. A step lease with increasing payments can be beneficial for a business that’s acquiring an income-producing piece of equipment which will earn little or no revenue at first, but which will produce higher levels of revenue in the future.
Candidates for a step lease with decreasing payments might include a business that anticipates a seasonal or other temporary reduction in revenues, or that is planning a future increase in debt level and prefers to pay down most of the lease amount beforehand.
Accounts Receivable Factoring Services:
Accounts receivable financing is a type of asset-financing arrangement in which a company uses its receivables — outstanding invoices or money owed by customers — as collateral in a financing agreement. In this agreement, an accounts receivables financing company, also called a factoring company, gives the original company an amount equal to a reduced value of the unpaid invoices or receivables.
This type of financing helps companies free up capital that is stuck in unpaid debts. Accounts receivable financing also transfers the default risk associated with the accounts receivables to the financing company.