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Wednesday, January 02, 2008

What is a Skip Lease?

The skip lease (seasonal payment lease) is an ideal financing solution for agricultural companies, school systems, recreational service firms, and other seasonal businesses. As the cash flow in such businesses is only seasonal, the business would prefer a lease with flexible payment schedules. The payment schedule of a skip lease involves the lessee required to make payments only in specific months of a calendar year, usually in months when the business experiences seasonal highs.

A provider of a skip lease will always structure the lease in a way that suits the business's irregular cash flow and budget. The skip lease will start with low payments that ultimately become higher with the growth of the company and its capital. Also, there is no penalty if the lessee fails to make payments during the off-season. In addition to seasonal businesses, the skip lease benefits businesses of a more cyclical nature and those whose capital is dependent on the acquirement of the equipment.

For more information on a skip lease, contact Graphic Savings Group at 203.336.4034 or e-mail us at mail@graphicsavings.com.

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