| Fair Market Value Lease (FMV) |
| Benefits: |
 |
Provides lowest monthly payments |
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Lease payment may be able to be deducted by lessee |
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May qualify for off-balance sheet,operating lease treatment for reporting purposes |
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Lessee has greater flexibility at the end of the lease |
| End of Term Options: |
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Purchase furniture for fair market value |
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Return furniture to Steelcase Financial |
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Renew the lease |
| Why would a customer choose this type of lease? |
|
Greater flexibility at the end of the lease |
|
Desires lowest possible payment |
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Wants expense treatment (off-balance sheet financing) |
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Would like to return furniture at the end of the lease |
$1.00 Buy-Out Lease |
| Benefits: |
|
Depreciation expense may be able to be claimed by lessee |
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Interest portion of lease payment may be able to be deducted by lessee |
| End of Term Options: |
|
Purchase furniture for $1.00 |
| Why would a customer choose this type of lease? |
|
Wants to own equipment at end of lease |
10% Purchase Option Lease |
| Benefits: |
|
Provides lower payments than the $1.00 Purchase Option Lease |
|
Depreciation expense may be able to be claimed by lessee |
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Interest portion of lease may be able to be deducted by lessee |
| End of Term Options: |
|
Purchase furniture for 10% of original furniture cost |
|
Return furniture to Steelcase Financial |
| Why would a customer choose this type of lease? |
|
Desires lower payment, but needs guaranteed buyout at the end of the lease term |
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Wants to own equipment at end of lease with fixed purchase option |
