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State, County & Municipal Leasing Programs
What do you do when there's "no money in the budget?
Most administrators have probably heard that
expression, a few too many times lately. Most government agencies
“live” year-to-year, appropriation-by-appropriation, grant-by-grant, with
spending horizons that rarely cross over fiscal periods.
“It’s either in the budget, or
If not, most
agencies simply can't make the purchase, no matter how critical the need.
But that doesn't necessarily mean you have to walk away. Many
government agencies are not familiar with how EASY it is for them to lease
essential new equipment, paying for that equipment, monthly, quarterly or
annually as their current appropriations allow.
Why pay in advance for essential
...that your agency will be using for years?
In most government lease scenarios, funds come out of OPERATING
and are not “booked” as capital expenses (often BIG a plus), due in part to
built-in non-appropriation language and on Federal transactions, termination
provisions. And leases do not create balance sheet “debt,”
for accounting purposes.
"Why Government Leasing Makes Sense!"
any equipment for:
Considerations for Federal & Municipal Leases:
Equipment That Can Be Leased to
Virtually any equipment qualifies-- from road
building equipment to software, fire trucks to office copiers and just
about everything in between! [What
Governments Can Lease]
Federal Government Leasing - Some Key
The federal government generally does not enter
into lease agreements with third parties (like leasing companies or banks). Most agencies however, are
free to assign the proceeds of their purchase orders (i.e. the stream of
payments) under the purchase Terms & Conditions, to third parties like
First Capital. The Terms & Conditions of the purchase order will
indicate the "structure" of the stream of payments--whether that is
monthly, quarterly or annually and the total number of periods etc.
These structures will include the required "non-appropriation" and
"termination for convenience" language. This becomes what we would
view in a commercial environment as "the lease."
The vendor (federal
contractor) is paid in full upon delivery and acceptance of the
equipment and is "insulated" from any termination or
non-appropriation issues in the future, other than those specifically
related to the vendor's own non-performance under the purchase order
Leasing puts most vendors (federal contractors) in a substantially better
position than if they were "at risk" for all of contingencies
under a typical government contract.
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Press here for more on the
Advantages of Municipal Leasing
to your department.
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Buying Power Quote*
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a Buying Power Quote?
We've turned the
"typical" quoting model on its head. With a Buying Power Quote,
YOU TELL US HOW MUCH YOU HAVE TO SPEND (in your annual budget)
and WE'LL SHOW YOU HOW MUCH YOU CAN BUY--TODAY with that same