Capital Lease (Lease to Own): A lease purchase or finance lease is a transaction in which the equipment can be purchased for a pre-arranged price at the end of the lease term. These leases can be arranged with purchase options or with purchase agreements. Depreciation benefits are typically passed to the lessee/customer.

Operating Lease: An operating lease is a transaction in which the equipment can be purchased for a pre-arranged price at the end of the lease term. Lessee/customer takes the depreciation, or in many cases the lessee can write off the whole payment (MFR recommends that you consult your tax adviser).

Tax Lease: The tax lease purchase options can be structured as either fair market value (FMV), capped, or provide for an early buyout option (EBO). Under a tax lease, the lessor retains the depreciation and the lessee gets the benefit of lower lease payments.

Loan: Equipment loans are notes and security agreements through which MFR finances your purchase of equipment of a fixed rate basis. Customer is entitled to the depreciation and interest write-off.