Phone: Phone: (248) 657-4600
Fax: (248) 369-6867
Patrick H Callahan
Chief Financial Officer
Vice-President Lease Finance
Steve has 37 years of IT experience with three large internal computer companies: IBM, Amdahl, and Fujitsu. His primary role was as a Regional Finance Manager to structure 3rd party lease financing for end user customers.
Working on one more subtab
Acquiring additional equipment for your business can be a capital-intensive project tying up funds that must be kept available for advertising, overhead and reserves. VFS has money available to invest in your business. Businesses of all types and all sizes count on us for leasing programs for all of their business equipment needs. Can we be of service to you?
Our company provides leasing and financing for all types of capital acquisitions. Our clients include many of the nation’s finest companies, each of which decided to lease for the same reason: Profit. Leasing is a great way to have the tools you need for profit while keeping your working capital working for you.
We offer unmatched service and creativity to help you reach your business goals.
Finance Lease (also called a “Capital Lease” or “Conditional Sale” or “$Buck out”)
The finance lease combines some of the benefits of leasing with those of ownership. Payments are spread over a period of several years and often represent the full value of the equipment.
The advantage of a finance lease is that you have the opportunity to own the equipment at the end of the lease, generally for a minimal payment, such as $1.00, or for a small percentage of the original equipment cost.
True Lease (also called a “Tax Lease”)
Under a true lease, the lessor is the legal owner of the equipment. For that reason, this type of arrangement can be particularly attractive for companies and professional practices acquiring equipment that is vulnerable to technological obsolescence, such as computers.
A true lease gives you a lower monthly payment for a given piece of equipment than a finance lease would, and in some cases, your business can claim the lease payments as tax deductions.
You have three options at the end of the lease term. You may purchase the equipment for its fair market value, continue to lease it, or return the equipment to VFS.
An operating lease is generally for a short term (typically three years or less) and is often used with high-tech or other obsolescence-prone equipment. In this type of lease, the lessor typically takes a significant residual position in the lease pricing, thereby bearing more of the risk of ownership. This, in turn, allows a lower monthly payment for the lessee.
Operating leases may qualify for “off balance sheet” financing for the lessee, in that the lease is recorded neither as an asset nor as a liability. In addition, the lessee has no further obligation with respect to the equipment once the conditions of the lease have been fulfilled.
As with a tax lease, the lessee usually is given the option to purchase the equipment at fair market value. You should check with your accountant to learn if your leasing arrangement can qualify as an operating lease.
State and Local Government (SLG) Lease
VFS makes this type of lease available to state and local governments for tax-exempt equipment leasing and purchase financing. The SLG lease provides an alternative to other methods that municipalities use to acquire equipment, such as cash purchases or bond referendums.
Because the interest income we derive from such leases is exempt from federal income taxes, we are able to offer lower rates through SLG leases, making this a lower-cost way for municipalities to acquire equipment.
A skip lease has a repayment schedule that includes months when no payment is made (and no penalty is assessed). Ideal candidates for this type of lease are organizations that need a flexible repayment schedule such as seasonal businesses (agricultural or recreational services firms, for instance) and school systems.
Step leases feature payment amounts that vary according to a pre-determined schedule. The payments increase or decrease – or both – during the term of the lease. A step lease with increasing payments can be beneficial for a business that’s acquiring an income-producing piece of equipment which will earn little or no revenue at first, but which will produce higher levels of revenue in the future.
Candidates for a step lease with decreasing payments might include a business that anticipates a seasonal or other temporary reduction in revenues, or that is planning a future increase in debt level and prefers to pay down most of the lease amount beforehand.