ADDITIONAL LEASE OPTIONS

K2 Capital Group can offer a variety of creative financing options that give you the tools you need to succeed. Some of those options include:

First Amendment Lease

The first amendment lease gives the lessee a purchase option at one or more defined points with a requirement that the lessee renew or continue the lease if the purchase option is not exercised. The option price is usually either a fixed price intended to approximate fair market value or is defined as fair market value determined by lessee appraisal and subject to a floor to insure that the lessor's residual position will be covered if the purchase option is exercised.

Deferred Payment

The deferred payment lease gives flexible financing solutions for businesses that need equipment for operation and development that will not immediately generate revenue. Generally, deferred leases allow businesses to acquire the necessary equipment with no down payment and no lease payments for 60 to 90 days.

Sale Leaseback

Sale leasebacks allow a company to unlock the equity in a particular asset (equipment, for example) by converting that equity into cash. It does so by conveying the title of its assets at their fair market value to another institution (usually a financial one) in exchange for a lump-sum payment. The new owner then leases the equipment back to the original owner, availing them to potential balance sheet enhancements and tax benefits.

Purchase Upon Termination (PUT)

Lease Purchase upon termination, commonly referred to as a PUT, is an agreement by the lessee to purchase the property at the end of the lease term for a fixed amount.

Step Up/Down Payments

Generally, new equipment will result in increased revenues over time. Step Up/Down Payments are designed to provide flexibility to the lessee as they try to match lease expenses with expected cash flows. Step-up leases are typically employed in longer-term leases spanning several years into the future.

Cost Per Case Financing

Cost Per Case structures are designed to provide the most flexible form of financing available since it is based on the actual usage of the equipment that is being leased. It allows businesses such as hospitals, surgery centers and other private practices the ability to control cash flow and address reimbursement pressures. It helps healthcare providers match revenues and expenses on a procedural basis. Rent payments are made as income is generated, facilitating positive cash flow and predictable margins. Also, in some cases, payments may be considered operating expenses for tax purposes (please consult your tax advisor for more information).

ABOUT US

Headquartered in Minneapolis, K2 Capital Group is a national provider of equipment leasing solutions within a variety of industries. READ MORE

LEASING ADVANTAGES

With the high cost of capital acquisition, leasing can be an attractive option when you consider the numerous benefits it provides. READ MORE

RECENT TRANSACTIONS

In the last eight years, the leasing professional at K2 Capital have financed more than $400 million in equipment. The company currently services nearly $100 million in equipment leases for its own portfolio and for many banks nationwide. READ MORE

RECENT NEWS

K2 Capital recently announced that it has formed a unique leasing partnership with MIB, a bankers' bank headquartered in Jefferson City, MO READ MORE

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