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Government Capital Corporation’s Municipal Finance Group provides innovative financing solutions in a variety of public sector areas. With our Municipal Lease-Purchase financing, we have provided thousands of financings for all types of personal property from coast to coast. Additionally, we have financed capital improvement projects that include Fire Stations, Libraries, Dispatch Centers, Sports Complexes, City Halls, and Renovation Projects.
Advantages to Lease Purchase Financing
Bond Election Not Required- Because of the annual appropriation features, tax-exempt municipal financings do not count against the municipalities debt limit, nor are they subject to normal debt incurrence procedures.
Flexible Terms- Lease terms generally are matched to the useful life of the equipment to be financed. The flexibility of monthly, quarterly, semi-annual, or annual payments provide for easy budgeting.
Builds Equity- A Lease-Purchase program permits the lessee to build equity with each payment. At the end of the lease term, the lessee owns the equipment upon remittance of one dollar.
Avoids Inflation Delay Costs- A Lease-Purchase obligation permits acquisition of needed equipment before prices rise.
Debt Limitation- Lease-Purchase financing does not effect debt limitation. Debt-to-fund balance ratios are very important in maintaining a good credit rating, as well as staying within statutory requirements.
Quick Response- Funds for equipment purchases can be made available in a matter of days after the municipality has completed the initial lease application form.
Emergency Purchase- Most state laws allow a governing body to purchase equipment without going through the bid process whenever an emergency is declared. A Lease-Purchase program is very useful in an emergency purchase.
Pre-Payment Options- Unlike general obligation bonds, our Municipal Lease-Purchase Agreement provides an option to purchase value at every payment date. This allows the issuer the most advantageous options for early pre-payment of the transaction.
Our proven track record guarantees you professional assistance with the knowledge necessary to provide structuring and pricing expertise across many equipment types. Out-of-the-box thinking has established Government Capital Corporation as a forerunner using this type of financing technique to provide funding for the following essential community services:
Public Safety (Fire Apparatus and Fire equipment) Technology Energy Management Communication Systems Transportation Vehicles Medical Equipment Road Maintenance equipment Refuse/Recycle Equipment Recreation Equipment Modular Buildings Sports Lighting For more information follow this link, http://www.govcap.com/images/general/Public_Safety.pdfQuestions? Give us a call or send us an e-mail.
Contact the winning team and put our expertise to work for you. |
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