What Type of Vendors?

Sell Equipment that holds trade-in value and there is an established secondary used market and/or Equipment that needs to be upgraded/updated/replaced every 3-5 years

What is a Vendor Residual Lease (VRL):

Provides the option to have either the Lessee purchase the equipment at a set residual price or to have a third-party vendor pay the residual off for the Lessee and take ownership of equipment.

What are the customer benefits of a Vendor Residual Lease?

  • Blends the benefit of both a Tax and Capital Lease Transaction
  • Offers a lower monthly payment while avoiding the hassle of an end-of-term buyout negotiation
  • Allows customer to keep equipment current and up to date with new technology
  • Give the customer option to keep the equipment at the end should they choose to at a known/set value
  • Ability to pay less through lease than purchasing the equipment outright

Example:

36-month VRL with a 15% end-of-term purchase option vs. purchasing outright

AFG is here to help provide the tools to close more deals and offer a complete solution to your customers.