State and Local Government
Municipal lease financing can be done on a tax exempt basis, at rates substantially below taxable funding rates, or on a true lease basis, where title of the equipment remains with the lessor.
Both types of leases are usually subject to termination for non-appropriation and therefore require documentation other than the standard commercial lease. Additionally, documentation requirements and the laws governing such acquisitions often vary from state to state, adding to the complexity of the transaction.
It is not unusual for equipment vendors and their affiliate leasing companies to have little or no expertise in the government tax exempt financing market. This is understandable because the state and local government market often represents only a small percentage of their overall sales, and the business potential doesn't justify the investment to learn that portion of the leasing business. Consequently, that portion of their business is often overlooked.
SFC can work with you to provide you with the specialized expertise not available internally to capture that portion of the marketplace for your business.
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