Sometimes certain business terms can seem like a foreign language. At Tiger Leasing we don’t want you to become overwhelmed with leasing terminology. Leasing has many benefits so we would never want any of our jargon to stop you from applying. This is why we put together this glossary of leasing-related terms:
Application form- The form used by leasing companies, given to potential lessees ready to apply for a lease. Tiger has streamlined our leasing process to make it as quick and simply as possible with online applications or downloadable application forms.
Credit score- Leasing companies heavily rely on scores from your D&B and FICO reports when evaluating applications, but scores alone are not the deciding factor of approving lease applications. Visit Tiger’s Credit Scores page for more information.
Deferred payment- A leasing program structured so the initial months of the leasing period have nominal or no payments; this type of program is beneficial to companies where the equipment will be used for a project won’t immediately generate revenue.
Down payment- An initial payment that is required when leasing equipment; usually only the first and last monthly lease payment is required as a down payment.
Fair market value buy-out- This leasing program provides you with the option to purchase the equipment at the end of the lease for its fair market value at that time. The options to continue leasing the equipment at its fair market value or return the equipment are also available with this program.
Lease purchase- This form of leasing program allows you to buy the equipment at the end of a program for a certain amount. Tiger offers a $100 buy-out leasing option.
Lease rate- The scheduled payment to a lessor for the use of equipment.
Lease term- The length of a lease, usually stated in monthly increments but sometimes in quarterly or yearly statements.
Lessee- The person or party that leases the equipment.
Lessor- The Company that rents the equipment to the lessee.
Level payments- Equal, scheduled payments over the term of the lease.
Municipal lease- A leasing program available to all city and state agencies that offers rates much lower than standard commercial rates.
Operating leasing- See “fair market value buy-out”.
Renewal option- The lessee’s option to renew a lease contract when it ends.
Seasonal payment- A leasing program where the payments can be specifically structured for businesses with seasonal cash flows.
Step-up/Step-down payments- A leasing program option where lease payments can be set up to match a company’s cash flow needs; payments can start low and increase during the later years of the lease or vice versa.
Term- The length of time a lease agreement lasts.
Vendor- The seller of the equipment that is leased.
Venture lease- A leasing program that is backed by a venture capital company and a preferred leasing plan for start-up businesses. Tiger offers a venture lease that provides 100% financing.
Feel free to contact the Tiger Leasing team with any questions or for more information: firstname.lastname@example.org.
Labels: Equipment Leasing