Capital Lease

The benefits of leasing with a path towards ownership

With Toyota Industries Commercial Finance, Inc. (TICF), you can finance your equipment with a Capital Lease, which has some of the characteristics of a purchase agreement, typically providing a purchase option at a nominal or below-market price, or providing a very minimal residual (also known as a Bargain Lease or $1 Purchase Option).

Key considerations of a Capital Lease include:

  • Alternative to cash and Retail Installment Contracts
  • You can purchase equipment at the end of lease for a nominal amount
  • Ownership passes at end-of-lease term
  • Asset and liability appears on balance sheet
  • Monthly payment is higher than an Operating Lease
  • Ideal for severe operating conditions

    Additionally, when you choose to finance your equipment with a lease, you can enjoy the following benefits:

    • Use of equipment without the responsibility of ownership
    • Only pay for the use of the equipment
    • Lowest fixed monthly payment
    • Ease, convenience, flexibility, and dollar value
    • Minimize maintenance costs on aged equipment
    • Use of current equipment technology and ergonomics
    • Planned replacement cycle increases uptime and productivity
    • Cash flow: conserve initial cash outlay and invest in core business
    • No responsibility to dispose of equipment
    • Possible tax advantages
    • Lease-end options: return, extend, or purchase

      Benefits of a Master Lease

      Our leases typically include a Master Lease, which allows current and future equipment acquisition needs to be fulfilled under a single Master Lease agreement.

      Key benefits of a Master Lease include:

      • Reduced documentation requirements
      • Multiple purchases over an extended period of time
      • Only one Master Lease agreement is required for line of credit

      Combine Our Products with Our Payment Options

      In addition to our flexible financing products, you can now combine any TICF lease with our One-Pay, Skip/Seasonal, or Flex Lease payment options.

      Skip/Seasonal Payments

      A customized payment schedule based on your business needs.

      • Payments can be matched to revenue streams or business cycles
      • Maintaining constant use of the equipment while making payments when it makes the most sense for your business
      • Most common in the agricultural sector, where growers and produce companies have high and low seasons

      One-Pay Lease

      The One-Pay Balloon Lease product is an alternative for customers who are used to paying cash for their equipment. Rather than making monthly payments like a traditional lease, make a one-time, up-front payment, then have no monthly payments for the balance of the term and retain all of the benefits of our Closed-End Operating Lease at end of term.

      • Keep cash available to reinvest in other areas
      • Keep current credit lines open
      • Reduced interest expense
      • No monthly invoices

      Flex Lease

      The Flex Lease program offers customers a lease for a specific initial term with an option to renew for a subsequent term at predetermined lease payments. This program typically offers more customer savings than a standard lease.

      • Option to extend lease based on customer’s business needs
      • Ability to match specific lease periods with customer’s contract commitments
      • Structure a program that will adjust to anticipated market fluctuations
      • Multiple term combination options available
      • Sum of payments with a Flex Lease typically total less than that of a regular lease of the same combined term
      • Allows the ability to exercise an early lease termination without additional expense

      TICF offers Flex Leases for Toyota Material Handling forklift customers only.