Equipment Leasing

Precisely the lease you need

At First Citizens we've been leasing to businesses since 1987, so we bring you experience and expertise in structuring a wide variety of different types of leases. We offer both capital leases and operating leases for leasing equipment — each type offers different benefits. Your First Citizens Relationship Banker can help you decide which is right for you. A capital lease has a stated residual with a nominal purchase option price, often just $1.00. With an operating lease, the purchase option price is the fair market value of the equipment at lease end. For tax purposes, the operating lease payments are expensed by the customer and the equipment is depreciated by the Bank.

It's simple and convenient

We make equipment leasing simple and convenient. You simply determine the equipment you want to lease, select the vendor or vendors and negotiate pricing. Then, we purchase the equipment and provide you with the appropriate lease documents. Payment is made to the selling vendor once you've received and accepted the leased equipment. Lease terms are generally 24 to 60 months in length.

Both capital and operating equipment leases from First Citizens are net leases — insurance, taxes and maintenance will be the responsibility of your firm.

Features & benefits

• First Citizens equipment leases provide 100% financing with only the first and last payments payable in advance. Result? Improved cash flow.
• Lease payments are lower than payments under traditional financing due, in part, to the residual value in the leased equipment.
• Any sales and use taxes are spread over the term of the lease.
• With an operating lease and a term of three years or less, you can expense the cost faster than the asset can be depreciated.
• Under an operating lease structure, the finance rate can be reduced because of the depreciation benefit to First Citizens.

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