Municipal Equipment Financing

Written by Jill Morrison
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Municipal equipment financing is a specialized type of lease that allows for tax advantages and the acquiring of almost any kind of new or used equipment. Municipal financing applies to government entities such as school districts, colleges, hospitals, law enforcement, fire, public safety, rescue, water and port authorities, EMS, museums, research centers, and other government agencies. Tax-exempt municipal leasing is the most common form of financing for these government entities.

Uses for Municipal Equipment Financing

Municipal equipment financing allows any size of municipality to acquire equipment and gain equity on the equipment with a payment plan that meets cash flow objectives. The financing is considered to be a lease, but full ownership of the equipment is often acquired at the end of the repayment term. Municipal leasing is also advantageous because it offers tax exemptions.

Government entities need to finance all sorts of specialized types of equipment. Examples of needed equipment include police vehicles, fire trucks, road equipment, school buses, computers, software programs, medical equipment, energy management systems, and telecommunications systems. Equipment is often needed for maintenance, training, installation, hardware, infrastructure wiring, video and multimedia applications, and software applications.

There are all sorts of benefits associated with municipal equipment financing. Municipal leasing is very fast, easy, and inexpensive when compared to most other types of leasing. It allows for preservation of capital dollars, improvement of cash flow, flexible budget structuring, project financing, low rates, and an alternative financial option that does not need voter approval. Municipal leasing meets a variety of circumstances and needs for different government entities.

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