Lower Your Payments Through Leasing.

Considering leasing versus purchase? Agricredit can help you determine which solution is right for you. While ownership has certain advantages, leasing is another flexible tool that takes into account your tax situation and usually offers you the lowest payment option.

A lease, in general terms, is a contract between the Lender (Lessor), who actually owns the equipment, and the customer (lessee) who uses the equipment. At the end of your contract, you can:

1. Extend the lease for a specified term;
2. Purchase the equipment; or
3. Return it to Agricredit.

Agricredit has options such as Stated Purchase Option (SPO) leases and Fair Market Value (FMV) leases. With an SPO, the equipment purchase option is agreed upon at the time of lease signing. An SPO lease typically offers the customer a lower payment than an installment contract. In the case of an FMV, the equipment purchase option is based on current market values at the end of the lease. A FMV lease typically offers the customer the lowest payment.

Why lease?

Leases are ideal for customers who:

• Want to manage cash flow
• Wish to guard against equipment obsolescence
• Seek equipment return options at the end of the contract
• Desire maximum tax benefit by writing off the lease payment in full

When deciding between ownership or leasing, the right option for you depends on your business, equipment needs, and budget requirements. Call Agricredit at 855-861-3288 for an in-depth discussion about which solution is better for you.

TIP: If it's equipment that will increase in value and can be acquired without impacting your capital, consider buying it. Most equipment needs are not so easily met, and that's where Agricredit’s lease options can help.