“Thinking “reel” green” is establishing a new source of credit through Renewable Energy Equipment Leasing while preserving your banking relationships and lines of credit”

Renewable Energy Equipment Leasing Bank Financing
Interest Rate Fixed Rate/Fixed Payments Usually an adjustable rate
Term Up to 5 years on all equipment over $5,000 Usually 2-3 years
Down Payment 100% Financing Typically 20-30% of total cost
Financial Statements Not mandatory for transactions up to $75,000 Required on almost all transactions over $10,000
Financial Reporting Not required to be reflected on balance sheet as debt Carried on balance sheet as a debt
Sales Tax Financed with monthly payment
Or in advance depending on state requirements
Must be paid in advance
Tax Benefits Usually 100% deductible over the term of the lease Depreciated over the IRS’S useful life of the equipment
Effective Costs Lower than bank financing due to tax benefits, lower down payment or none, longer lease term and no requirement for compensating balances Higher cost due to longer depreciation schedule, larger down payment, adjustable interest rate, and other hidden costs
Opportunity Preserves bank lines and cash allowing you to invest further in your busines Restricts bank lines possibly preventing opportunities to expand your business