LSI’s Equipment Lease Options

Since 1976, LSI has been a trusted partner in equipment leasing, helping businesses acquire the tools they need to succeed. To better serve our clients, we now offer two flexible leasing options tailored to meet a variety of financial and operational needs: the “True Tax Lease” and the “Finance Lease Agreement” (also known as the “$1.00 Buyout Lease”). Below, we detail the features and benefits of each option to help you determine which is best for your business.

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True Tax Lease (Operational Lease)

The True Tax Lease is a traditional operational lease that LSI has proudly offered for nearly five decades. This option provides significant tax advantages and balance sheet benefits for our customers.

Ideal For:

  • Businesses looking to optimize tax deductions.
  • Companies focused on improving their balance sheet metrics.
  • Customers who want flexibility in deciding whether to purchase the equipment at the end of the lease.
100% Tax Deductible Payments:
Customers can write off 100% of their lease payments as a rental expense, reducing taxable income and improving cash flow.
Balance Sheet Impact:
Only the payments due are recorded as short-term liabilities, leaving the asset off the balance sheet. This helps customers lower their debt ratios, which can enhance their ability to secure favorable operating lines or lending rates.
End-of-Lease Flexibility:
At the conclusion of the lease, customers have the option to purchase the equipment by paying a residual amount. If they choose to do so, they can take advantage of Section 179 depreciation for the remaining useful life of the equipment.

Finance Lease Agreement ($1.00 Buyout Lease)

The Finance Lease Agreement, also known as the $1.00 Buyout Lease, is a more recent addition to LSI’s offerings. This option expands the range of equipment we can lease and is especially suited for assets like trucks, trailers, or grain bins that involve titles or mortgages.

Ideal For:

  • Clients seeking traditional financing structures.

  • Businesses acquiring high-value assets like trucks, trailers, or grain bins.

  • Companies that plan to own the equipment outright from the start.

Ownership Transfer:
This lease functions similarly to traditional financing. The customer is treated as the owner of the equipment while LSI holds a lien until all payments are completed.
Fixed Buyout:
At the end of the lease, customers pay just $1.00 to signify the conclusion of the lease and full ownership transfer.
Broader Applicability:
Ideal for equipment requiring a title or mortgage, making it a practical choice for larger or specialized assets.

Why Choose LSI?

With decades of experience, LSI provides flexible leasing options tailored to the diverse needs of our clients. Whether you’re looking for tax efficiency and balance sheet benefits with the True Tax Lease or a straightforward path to ownership with the Finance Lease Agreement, LSI is here to help you achieve your goals.

Contact Us Today

Reach out to our team to learn more about these leasing options and find the perfect solution for your business. Let LSI partner with you to make equipment leasing simple, strategic, and successful.