Tax exempt municipal leasing is one of the areas of municipal funding expressing fast growth. A tax exempt municipal lease (lease-purchase agreement) is a unique financial instrument that enables eligible government organizations to gain possession of essential equipment. The range of equipment that can be leased under a tax exempt municipal lease is quite vast and includes police cars, fire and rescue vehicles, school buses, energy management systems, portable buildings, ambulances, water treatment equipment, heavy machinery, security systems, laboratory equipment, hospital instruments and equipment, meters, road construction equipment, and security systems.

A tax exempt municipal lease includes a ''non-appropriation of funds'' clause. As per this clause, the lessee can end the lease on completion of its financial year if money has not been allocated for the approaching year's payment. This can be done without putting the leaseholder in default under the lease stipulations and terms. The tax exempt municipal lease offers an affordable way for state or local governments to acquire immediate capital in case of an emergency, when unexpected expenses arise, or to tackle growth.

Some other advantages of a tax exempt municipal lease are:

Preservation of working capital.

Provides an effective way to manage cash flow.

100 percent financing - A tax exempt municipal lease provides financing for all project costs and requires no down payments.

No issuance cost.

Easy and quick approval process - Is quicker and more flexible when compared to issuing of a bond referendum.

Low risk rate - This type of lease is of great use in a market with an unstable rate. It does away with a good portion of the interest rate risk connected to waiting 2 to 3 months to float a bond. It achieves this by offering the facility to close rapidly and also to finance an escrow account, if necessary.

You get all the benefits of asset ownership minus the exorbitant upfront costs.

No underwriting expenses.

Lease term is structured so as to match the equipment's productive life.

For a customized and flexible municipal lease, contact Graphic Savings Group at 203.336.4034 or email us at mail@graphicsavings.com.

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