Types of Leases By Dollar Size

Lease Type	Dollar Size	Credit Evaluation	Credit Evaluation time	Equipment type
Small Ticket	$2,000-$75,000	Personal and business reports with bank and trade references	30 seconds to 3 days depending on sources	Wide open. Some restrictions on used or third party transactions
Mid Ticket	$75,000-$2,000,000	Personal credit, business reports and evaluation of financials depending on company structure	2-7 days depending on source	Wide open with specific restrictions on a case-by-case basis.
Large Ticket	$2,000,000 and up	Evaluation of financial strength of company only	2-7 days depending on source	Wide open with specific restrictions on a case-by-case basis.

Types of Leases By Structure
For the small business owner there are two primary types of leases that determine the tax benefits for customers: Operating (true) leases and Capital (finance) leases. The key determining factor in understanding which type of lease is most appropriate for you is the buyout at the end of the lease. eLease recommends consulting a CPA for advice on which structure makes the most sense for your business situation. The following chart compares various issues with each type of lease:

	Operating (true) lease	Capital (finance) Lease
Characteristics	Usage Agreement	Purchase Agreement
Buyouts	Fair Market Value (FMV)	$1.00 buyout or 10% buyout
Payments	Lower monthly payments	Higher monthly payments with a fixed buyout at the end
When to Use	1.when low monthly payments are highest concern.	2. When collateral value of the equipment decreases rapidly making use of the equipment more important than ownership at the end of term (ex. Computer hardware/software) When ownership of the equipment is desired at the end of the term
Tax Benefits	Strongest tax benefits	Less tax benefit than operating lease
Balance Sheet	Not reported on Balance sheet	Shown as a long term asset

Sale Lease Back
A Sale Lease Back occurs when a leasing company buys equipment directly from a customer, and then leases it back to them over a negotiated term. Example: a trucking company buys a trailer from a dealer with cash and then turns to a leasing company to roll it onto a lease. Typically "lease backs" are permitted within three (3) months of the original purchase.

Master Lease
A Master Lease is a lease arrangement on Mid to Large ticket transactions, where a customer is approved for a predetermined amount and is given a defined time period to draw down against the total approval amount. Master leases are good tools for a company buying multiple pieces of equipment from multiple equipment sellers over a longer period of time. Ex: A company building a hotel gets approved for a $3,000,000.00 Master Lease and over a six (6) month period performs distinct transactions with a restaurant supply company, furniture supply vendor, computer retailer, and telephone retailer. Each transaction is handle separately within the established time frame.