 Purchase — Purchased as a capital expenditure, modular buildings can be considered separately from the land on which they are located. Unlike conventionally built structures, modular buildings can be relocated in the event that a business changes locations.
Finance / Capital Lease — In a in a finance lease , the customer pays a pre-determined monthly rate for a specific number of months, with an option to purchase the building at the end of the lease, for what is typically a nominal amount. The customer receives title to the building if the purchase option is exercised. This option allows the customer to utilize limited capital resources in other areas of the business. In addition, most lease payments are tax deductible expenses.
Operating Lease — Like a Finance Lease, the Operating Lease allows the customer to pay a pre-determined monthly rate for a specific number of months. The Operating Lease may or may not offer a buy-out at the end of the lease term. Customers enjoy attractive monthly lease rates without obtaining ownership to the building. Customers may prefer the attractive rates of a lease without actually owning the building at the end of the lease.
Municipal Lease — A tax exempt municipal lease is a useful financing alternative available to state and local government agencies, including public school districts and some charter schools. In this option, the customer pays a pre-determined rate for a specific number of payment periods with a nominal buy-out at the end of the lease term. After the buy-out, the customer receives title to the building. Payments can be made in a variety of installments such as annually, quarterly or monthly. Lease terms typically range from three to seven years, and payments can be structured to meet the customer's available cash flow.
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