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A traditional lease, also referred to as a dollar buyout lease is a common option that every finance company can offer. When an organization knows in advance of procuring a technology solution that they intend to own the solution at the end of the term, a $1 buyout lease is commonly recommended. A $1 buyout is an ownership program and it is therefore considered a capital expense (CAPEX) lease for accounting purposes.
Additional accounting implications include the requirement to record an asset and its corresponding liability on the balance sheet. The asset will then be depreciated. This program is best suited for customers who know up front that they want to own the equipment and expect it to meet their needs for a considerable length of time. If you need to be at the forefront of technology and if technology advancements can bottleneck your growth potential you may be better suited for our exclusive monthly payment option called Shield or technology equipment as a service.