Government Leasing Company (GLC)
is a nationwide originator and financial brokerage firm focusing
on Federal, State and Municipal Lease Purchase and Rental
Financing.
GLC provides public administrators an effective means of
acquiring needed property at low interest rates in conformity with
constitutional and statutory limitations on assumptions of
long-term debt.
FEDERAL AGENCY FINANCING
What is a Federal Lease?
A Federal Lease is an alternative to an outright purchase. It allows Federal Agencies to obtain necessary equipment and other assets while still operating within their budget.
Overcome Budgetary Constraints
The most significant challenge faced by Governmental Agencies when acquiring needed property is their fiscal year budgetary requirements. Often, insufficient funds are budgeted for the outright purchase of essential property. GLC overcomes this budgetary constraint by financing the property. We hold GSA contracts for lease financing, so we can team with the GSA vendor of choice to provide leasing services. We can also finance property obtained with open market pricing, terms and
conditions
Who Uses a Federal Lease?
Most agencies of the executive (such as the Departments of Defense, Commerce,
Education, Energy, Interior, Justice, Labor, State, Department of Transportation, Treasury and Veterans Affairs), legislative (such as the Senate, House of Representatives, Library of Congress, General Accounting Office, Government Printing Office), judicial (such as the Supreme Court and other Federal Courts) branches of the Federal Government use leasing to acquire property and other assets, as well as several semi-independent agencies (such as EPA, FEMA, GSA, NASA, SEC, SBA, SSA, TVA, and
USPS).
MUNICIPAL AGENCY FINANCING
Municipal Lease Purchase
A Municipal Lease is a contract that has many of the characteristics of a standard commercial lease, with three primary differences:
* In a Municipal Lease, the intent of the lessee is to purchase and take title to the equipment. The financing is a full payout contract with no significant residual or balloon payments at the end of the lease term.
* The lease payments include the return of principal and interest, with the interest being exempt from Federal income taxation to the recipient. Typically, a tax-exempt interest transaction will be financed at interest rates lower than equivalent commercial financing.
* The Municipal Lease provides for termination for non-appropriation of funds by the Government Agency. Municipal
Leases also include: $1 Buyout: The Lessee owns the equipment at the end of the lease term.
Early Purchase Option: If funds become available, the Government Agency has the option to buyout the lease at any time after the completion of the first fiscal year. A detailed amortization schedule is provided for each transaction.
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