TRAC LEASES
Combine the advantages of leasing with ownership options.
A Regents’ terminal rental adjustment clause lease (TRAC) combines all the advantages of leasing while retaining many of the upsides of ownership including the option to purchase the equipment at the end of the lease term. When your Regents’ TRAC Lease ends, you have the option to:
Purchase the equipment at the end of the lease term at a pre-determined residual agreed to when the lease starts, or…
Opt to continue to lease the equipment at a reduced rate with payments based on the residual value amount, or…
Simply return the equipment to Regents.
Depending on your cash flow needs, you can select a higher end-of-term residual amount for a lower monthly payment, or keep the end-of-term residual lower to pay more through the stream of payments. This flexibility of payment options makes the TRAC Lease attractive to any business trying to improve their financial performance ratios and better manage their liquidity position and cash flows.
Features & Benefits
Commercial equipment financing through TRAC Leases
Tax Benefits:
Off-Balance Sheet
With off-balance sheet financing, qualifying payments on a Regents True Tax Lease are up to 100% deductible as an operating expense as opposed to only being able to deduct depreciation and interest.
100% Financing
Options
At Regents, we understand that financing may be needed for associated project costs, including soft costs such as installation, design fees, software, delivery, training, etc. – costs that many banks cannot or will not cover.
Progress
Payments
Under Section 179, the entire cost of the qualifying equipment may be written off the year it is purchased and put into use. The client may opt to own the equipment after the lease is up (at a low pre-negotiated price). This is one of the benefits of working with a professional in the equipment leasing industry.
Avoid Bank
Restrictions
Avoid blanket liens, restrictive covenants, rate escalator clauses, compensating balance requirements, or other typical surprises in traditional lending restrictions all while improving financial and internal performance ratios.
Lower Financing Costs
Lower costs with no hidden charges, non-utilization fines or fees in fine print. Converting variable debt to fixed rate financing hedges against inflation and rising interest rates as payments remain the same for the term of the contract.
3 step process
Regents Capital streamlines the process to get your commercial equipment financing faster
Review
We review credit application and other related materials, equipment residual values and business goals.
Approval
We structure the transaction and with approval by both parties, final documentation commences.
Funding
Regents funds the equipment and manages finance project scheduling, vendors and documentation as needed.
FREQUENTLY ASKED QUESTIONS
What Types of Equipment do you finance?
A Regents’ TRAC Lease is generally used for “over-the-road” vehicles like trucks, tractors and trailers. However, Regents may be able to structure a TRAC lease to finance other types of commercial transportation equipment with moderate to high residual values, such as aircraft, rail and marine. Give us a call at (888) 901-4207 to talk to us about your specific business equipment needs and growth goals.
What About new, used or highly customized equipment?
Regents funds 100% of new equipment cost (+ most soft costs) and typically funds used and/or highly customized equipment up to 100% of FMV (depending on the pre-determined residual values). Give us a call at (888) 901-4207 to explore structures tailored to your specific business needs.
What terms do you offer?
Regents offers flexible terms from 24 to 72 months depending on the unique business needs of each client. Seasonal (Step or Skip), Monthly and Quarterly payment schedules are available, as are longer terms depending on the type of structure and the client’s credit profile. In addition, depending on the type of lease, Regents offers custom buyout structures including $1 Buyouts and Fair Market Value (FMV) options and terms.
Can “Soft Costs” be included in our lease?
Regents is typically able to finance some of the soft costs, such as delivery or engineering/design fees, included in equipment transactions. Give us a call at 888.901.4207 to discuss your specific business needs.
What Documentation do i need to provide?
In most cases, Regents only requires a completed application, current interim statement and the last 3 audited or reviewed financial statements. If available, an equipment quote will help to speed along the review process.
On occasion, if audited or reviewed financial statements are not available, we have been able to secure funding with corporate bank statements or tax returns. Approvals are granted only on a case-by-case basis.
Who will service our account and be our point of contact?
Effective management of all transaction processes, schedules and documentation are provided by dedicated project teams that consist of an Account Executive, Account Manager, Documentation Manager, and Vice President of Credit as well as various specialists and administrative staff.
Who will service our account and be our point of contact?
Effective management of all transaction processes, schedules and documentation are provided by dedicated project teams that consist of an Account Executive, Account Manager, Documentation Manager, and Vice President of Credit as well as various specialists and administrative staff. Your team will always be available to you, which is just another reason we’re the top choice for capital equipment leasing companies.