Lease Definition

A lease is simply an agreement by one party (lessee) to pay rent for a specific amount of time in exchange for the right to possess and use the owner's (lessor) property. The lessee does not own the property during the term of the lease. At the end of the lease, the lessee has the option to purchase, re-lease, or return the property to the lessor. Leases take the form of written contracts with detailed terms and conditions that include length of lease, structured timing, amount of payments, and end of lease options and provisions.

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Leasing Benefits

When it comes to acquiring equipment, Behineh understands that you have several financing alternatives to consider. However, there are a number of reasons why 8 out of 10 American businesses have embraced leasing as a means to finance their equipment. The following summary outlines just a few of the many advantages that equipment leasing affords our clients:

• Capital Conservation
  
  Leasing effectively frees up working capital for other productive operational uses and business prospects. It also allows you to overcome capital budget restraints.
• Credit Line Preservation
  
  Leasing keeps lines of credit open to finance other strategic business opportunities or address emergencies, and may provide some benefits to covenant compliance depending on the structure and terms of the credit agreement with your bank. Leasing will also diversify your credit history.
• 100% Financing
  
  No down payments are required and soft costs such as freight, installation, and tax can be included in your lease agreement.
• Hedges Obsolescence
  
  Equipment can be returned or upgraded allowing you to avoid and more effectively manage any accelerated equipment obsolescence trends arising out of advancements in related technologies.
• Fixed Interest Rates
  
  Interest rates and payments are fixed and structured at closing to protect you against inflation or other market-related volatility.
• Off Balance Sheet Financing
  
  Certain qualifying leases may provide for off balance sheet accounting treatment, thereby preserving your debt ratios.
• Tax AdFinances
  
  Sales tax can be deferred over the lease term, with qualifying payments reducing tax liabilities. As always, you should discuss these advantages with your accountant and/or tax advisor.
• Flexible Payments and Terms
  
  No money down, extended terms, flexible payments, and equipment additions and upgrades are all available for your consideration.
• Fast Approvals
  
  Quick credit approvals ensure that you get your equipment as expeditiously as possible.
• Simplified Documentation and Billing
  
  Small ticket transactions require just a convenient one-page credit application, with minimal follow-up due diligence.

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Leasing Options

• Monthly Plan
  
  The most common plan used by our customers, the Monthly Plan is defined by equal lease payments that are made on a monthly basis over the term of the lease.
• Quarterly Plan
  
  If your preference is to make quarterly payments, Behineh can structure your lease in a manner that will allow you to make payments every three months.
• Deferred Plan
  
  Should your financial projections indicate that your equipment may not begin generating positive cash flow for a period of time, Behineh can defer your first payment for a period of up to 180 days, allowing you to ramp up operations before beginning to address the financial obligations of your lease.
• Seasonal Plan
  
  For our business partners that experience predictable cash flow fluctuations due to seasonal business cycles, the Seasonal Plan option will allow you to structure your lease in a manner that matches level of your payment obligations with the revenues generated from the equipment.
• Step Plan
  
  The Step Plan Option is structured so that the payment obligations either increase or decrease over the lease term. Step-up leases are structured so that the lease payment obligations increase over the life of the lease, and are ideal for businesses with steep learning curves or that are in an early business life-cycle growth phase. Conversely, Step-down leases are structured in a manner in which the lease payment obligations decrease over the term of the lease, allowing our business partners to minimize their longer-term financial charges while maximizing the present value of the tax benefits associated with their lease.

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The Approval Process

1. Submit
   
   a completed lease application to Behineh Finance Group.
2. Choose
   
   a vendor, select the equipment, and negotiate your best price. Used equipment will be considered, but must be disclosed up-front. A lease can include multiple vendors. If you do not have a vendor, ask your Behineh representative for a recommendation.
3. Upon approval
   
   , lease documents will be forwarded to you for execution.
4. Upon receipt
   
   of the properly executed documents and advance payment check, if required, a purchase order will be issued to your vendor(s). To expedite the process, in some instances, we have the ability to e-mail your lease documents.
5. The vendor
   
   ships the equipment to the equipment location and invoices Behineh . After you verify that the equipment is operating to your satisfaction, payment is remitted to the vendor(s) and the Lease commences. Your second lease payment will be due 30 days from the lease commencement date.

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