Financial Options
Straight Acquisition
Lease Options
Operating Lease
Capital Lease
Synthetic Lease
Cenergy Services Agreement
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Financial Options
Synthetic Lease
This is a combination of an Operating Lease and a Capital Lease. A third party owns the newly installed system equipment. The customer will make periodic lease payments. The synthetic lease allows the lessee (customer) to depreciate the equipment and deduct the interest portion of the payments for income tax purposes, while expensing the monthly rental/lease payments for book accounting purposes. Neither the asset nor the liability appears on the lessee’s balance sheet.
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