MMD's LEASING PROGRAMS
Below are some of the most popular programs we offer. To make sure you are looking at the best option for your company’s specific needs, please be sure to contact us.
Equipment Finance
Agreement (EFA)
An Equipment Finance Agreement (EFA) is MMD’s version of a standard loan. This type of contract is our most popular product because it’s familiar and easy to understand. An EFA allows you to depreciate your equipment over 2-7 years while writing off the interest paid within a given tax year. An EFA allows you to take advantage of the IRS’s Section 179 depreciation schedule.
Lease Types
Capital Lease
This is a lease with a $1 purchase at the end, which allows you to pay for the equipment fully over the lease term, after which the title passes for nominal consideration. These leases may not be directly expensed for tax purposes, requiring you to capitalize and depreciate the equipment over its guideline life.
10% Purchase Upon Termination Lease (PUT)
The 10% Purchase Upon Termination Lease (PUT) is may be considered an operating lease and can sometimes be characterized as off-balance sheet financing, in which case monthly payments are treated as a rental expense. Please contact us and/or your financial adviser to discuss your company’s specific situation.
Fair Market Value Purchase Option
The Fair Market Value lease (FMV) is often considered a true lease meaning that the contract is set up as a long-term rental with the option to purchase the equipment at the end of the contract.
Master Lease
A leasing line of credit is established for your company. Equipment is purchased as needed over a period of time, and added to the Master Lease by using a simple one-page Schedule. Lease Payments are made only on equipment that is actually delivered, and purchases from any number of vendors may be included on the same lease