Equipment Financing Purchase Program
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The Equipment Financing Purchase Program is an innovative financing option offered by the Florida League of Cities, Inc. This program has been established in response to numerous requests for small and medium-size cities searching for a cost-efficient way to lease purchase equipment on an annual basis.
This Program allows you to "fix" the rate annually for your next segment of lease purchase equipment. The minimum amount for this program is $50,000 financed for up to 10 years, depending on the life of the equipment being lease purchased. Numerous types of equipment can be financed at one time, ranging from fire rescue vehicles to computer and furniture.
The Florida League of Cities, Inc., as Program Administrator, will coordinate the:
* drafting of documents (subject to approval of local counsel)
* hiring of professionals
* investment of proceeds (if desired)
Most importantly, the League will continually monitor the program to maintain cost-effective rates.
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What is a Master Lease?
The Master Lease concept is very simple. It allows you to set up a "master" set of documents one-time. Then, in subsequent fiscal years, equipment can be added to the original "Master Lease" document, subject to annual credit review. Instead of purchasing "pay as you go," you can stretch out payments at tax-exempt rates and reduce the impact on your annual budget. The funds saved can be used to invest at taxable earnings ranging anywhere from 1.00% to 2.00% above your interest costs.
A Master Lease offers maximum financing flexibility, providing for:
* Multiple types of equipment financed
* Multiple lease terms
* Multiple fundings
* Extended drawdowns (i.e., 12 months)
* Optional rate lock and escrow funding
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