Types of Equipment Leases

Wondering what type of equipment lease is best for your business? Well, you have come to the right place. Balboa Capital developed this page to help you learn more about the various types of equipment leases we offer. There is no one-size-fits-all type of equipment lease, but the information below can help guide you in the right direction.

Fair Market Value Lease (FMV)

A fair market value (FMV) lease from Balboa Capital provides you with several options once your lease agreement ends. You can buy the equipment at its fair market value, lease it again, return it, or trade it in for a new or upgraded model/version. An FMV lease is also referred to as a “true lease” or “operating lease.”

Dollar Buyout Lease

A dollar buyout lease from Balboa Capital is a good option if you plan on keeping the equipment once your lease term ends. A dollar buyout lease requires a higher monthly payment than an FMV lease, but it allows you to purchase the equipment for $1 at the end of your contract.  The dollar buyout lease is also known as a “capital lease.”

Sale-Leaseback

A sale-leaseback with Balboa Capital allows you to unlock your equipment’s equity, acquire cash, and strengthen your balance sheet. Here’s how it works: You sell your equipment to Balboa Capital, and we lease it back to you over a set period of time. The sale-leaseback transaction provides you with cash that you can use for any business need, and you can still use your equipment to help your business make money. Certain restrictions apply, so contact us for more details.

Wrap Lease

Balboa Capital offers wrap lease solutions to our existing customers.  This is a great option if your business has an immediate need for an important piece of equipment or technology. With a wrap lease, you can finance new or upgraded business equipment with your existing lease.  We will consolidate your new lease payment with your existing lease payments and come up with a single payment that works with your budget.

New Business Program

Getting financing for a newly established business can be difficult. But with Balboa Capital, it does not have to be. If your company has been operating less than one year, and you meet our minimum FICO score and MDS score requirements, you may qualify for up to $15,000 of financing. If your company has been operating between 12 months and 24 months, you may qualify for up to $25,000 of financing. Personal guarantees and automated clearing house (ACH) are required on all transactions that fall under our new business program.

As you can see, there are several types of equipment leases to choose from. If you have questions about them, we have the answers you need. Call Balboa Capital at (888) 225-2621 and ask to speak to one of our account managers. You can also submit your equipment lease application online to jump-start the process.