What are the benefits of Refinancing Existing Tax-Exempt Leases?
Do you have existing tax-exempt leases? Are you looking for ways to increase your purchasing power? There are many benefits you can reap from refinancing existing tax-exempt leases.
If you are curious about what is involved in refinancing existing tax-exempt leases, this is a helpful guide.
What is Tax-Exempt Refinancing?
Tax exempt refinancing is a financial incentive offer to tax exempt entities to help the organizations purchase essential business equipment and further develop their facilities.
Refinancing Existing Tax-Exempt Leases can help your organization achieve the following financial benefits:
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You will have the opportunity to take advantage of lower interest rates that will lower your corresponding lease payments.
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By refinancing existing tax-exempt leases, you can reduce the term of your lease; which will help to pay the lease off quicker, while saving money on interest charges.
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The length of the lease may be increased to help spread the costs and lower the amount owed per month.
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Refinancing can provide a fixed rate rather than an adjustable rate.
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Tax-exempt leases can be refinanced into a higher loan amount to provide necessary capital to meet growing demands
Refinancing an existing tax-exempt lease allows you to develop a new lease term so you can use the new lease to pay off your old lease. Essentially, you are trading your existing tax-exempt lease term for a more favorable tax-exempt lease term.
Refinancing an existing tax-exempt lease is a good idea if certain financial factors exist. Factors such as a credit enhancement or a reduction in interest rates makes refinancing a tax-exempt lease an option worth exploring. If the agency’s credit has improved since the initial lease, there can potentially be lower payments associated with refinancing your existing tax-exempt lease.
Grant Capital Management has refinanced over $200 million in leases within the public sector and has saved clients millions of dollars in the process.
By consulting with Grant Capital Management, we can help you refinance your existing tax-exempt lease at the right time so your agency may benefit from reducing substantial costs associated with existing leases. We will create a customized financing package and will help to identify how much can be saved as well as how to best utilize those savings.
Grant Capital Management is a leading provider of capital lease financing to the public sector. We finance almost any type of essential-use capital equipment, real property or Energy Performance Contract. Since 2000, we have funded over $4 billion in lease financings. Grant Capital designs master leases, taxable and tax-exempt lease-purchase agreements and operating leases from $500,000 to $60 million and beyond with terms in excess of 20 years to meet our clients’ specific requirements.
If you need lease-financing services to finance a project, contact Grant Capital Management at 410. 715.9135 or click here today!
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Source:
http://www.accessnationalbank.com/home/fiFiles/static/documents/taxexempt_financing_nonprofits_.pdf
http://www.afnleasing.com/faqs.pdf
http://www.taxexemptleasing.com/overview.html