What Is Municipal Lease Purchase Financing?
As cities, counties, schools, fire districts, and other municipal entities work to serve their communities, they often need equipment, but are without the immediate financial resources to address those needs. At Computer & Equipment Financing, we specialize in Municipal Lease Purchase Financing (MLPF), allowing municipalities to efficiently purchase vital equipment such computers, software, machinery and vehicles without large, up-front cash payments. Unlike captive lending programs, Computer Financing finances both new and used equipment, from any manufacturer.
An MLPF is also known as a tax-exempt municipal lease. It is a contract that enables government entities to acquire essential-use assets, including fire and public safety equipment, modular buildings, vehicles, computer hardware and software, real property and much more. How Lease Purchase Financing Works
A MLPF allows municipalities to purchase property and equipment through installment lease payments, which can be made monthly, quarterly, semi-annually, or annually. As payments are made, the municipality, which maintains ownership of the equipment, builds equity in its investment.
For municipalities, MLPF is a year-to-year commitment to make payments, not a commitment to pay debt. Because MLPF contains a non-appropriation or “funding-out clause,” in most states, no voter approval is necessary to enter into the agreement. This allows for termination if funds have not been appropriated.
Key Features of a MLPF
- Fast, simple & cost effective
- Lower cost alternative to traditional bond financing
- Low, tax-exempt interest rates that are fixed for the term of the lease
- Lease payments that are considered an operating expense, not long-term debt
- Provides an avenue to ownership that does not create a debt obligation
- Payments can be structured to meet cash flow and budgetary requirements on a monthly, quarterly, semiannual or annual basis.
- A master lease program that allows for simple add-on schedules.
MLPF at Computer & Equipment Financing is Simple, Fast and Effective
- One Page Application from $5,000.00 to $150,000.00
- Same day approvals
- No “Opinion of Counsel” required
- Non-appropriation language included on all leases
- Receive a no-obligation financing quote any time
- No down payment required
Contact our office for details on Municipal Lease Purchase Financing