UNITED TELECOM | Service

Leasing

Financing Solutions for Your Business

Lucent Technologies Product Finance (LTPF) and United Telecom are your financing consultants, helping you structure a leasing solution tailored specifically to your organization's unique technology management, cash flow, and tax management priorities.

Why Does Leasing Makes Sense For Your Business?

Sustain Your Competitive Edge
Your business – like most – changes almost daily. New competitors, new market forces, new financial strains, new organizational structures all add up to a need for flexibility. When you select new technology, you wonder if it will be replaced by a faster, more powerful alternative next year, or even next month. Leasing your Lucent Technologies equipment avoids the risks of ownership because you pay only for the use of the equipment. When your lease expires, you can buy the equipment, trade it in for the latest technology, or simply walk away (depending on the type of lease you choose). You're putting a technological "safety net" in place, so your company's competitive edge is never dulled by the process of moving up to faster, larger, or different equipment.

Conserve Your Capital
Leasing lets you keep capital free for investment or other business expenses instead of tying it up in fixed assets. Profits from these investments offset the cost of the lease – you don't have to own an asset to make money using it.

Generate Profits
Reinvest the cash you conserve into inventory or a new marketing promotion – investments that can bring real profits to your business.

Preserve Existing Credit Lines
Leasing gives you a new source of credit for present and future needs, while your existing bank lines remain intact for other uses.

100% Financing
Unlike bank loans, leasing means no down payment and no required compensating balances in most cases. Leasing lets you finance the cost of the equipment, plus installation, maintenance, taxes, shipping charges, and even software.

Tax Advantages
Leasing offers important tax benefits that reduce the cost of obtaining equipment. Depending on the type of lease you choose, you may be able to write off the entire monthly payment as an operating expense or capitalize the outlay.

Selecting the Right Type of Lease

United Telecom offers two types of leases for businesses, with a few different alternatives available for each:

True Lease

True Lease is another term for a tax lease where, for IRS purposes, the lessee (you, the customer) claims the entire amount of the lease payment as an operating expense or tax deduction. This type of lease typically provides you with the lowest monthly payment, and can often be structured to meet your requirements for operating lease treatment.

At the end of the lease term (usually 36, 48, or 60 months), you have the following options:

Replace your equipment with the latest technology (and enter into a new lease agreement)
Renew your lease at a monthly amount based on the equipment's fair market value and the renewal term*
Purchase the equipment at its fair market value
Return the equipment to the lessor

Finance Lease

Under a finance lease, the lessee (you, the customer) is able to claim the benefits of ownership for IRS purposes (the lessor, however, is the actual owner). That means you're entitled to claim depreciation and interest expense deductions in lieu of an operating expense deduction. LTPF offers two types of finance leases: the 10% purchase option lease, and the $1 purchase option lease.

10% Purchase Option Lease
This lease structure is designed for businesses that want the flexibility to purchase, continue leasing, or return the equipment at the end of the term, but want to lock in your end-of-lease costs at the time the lease is initiated. At the end of the lease term, you may:

Replace your equipment with the latest technology (and enter into a new lease agreement)
Purchase the equipment for 10% of the original financed amount
Return the equipment to the lessor

$1 Purchase Option Lease
This type of lease is suited to businesses that plan to keep their equipment after their lease term ends. At the end of the lease, you'll have two options:

Replace your equipment with the latest technology (and enter into a new lease agreement)
Purchase the equipment for $1
Return the equipment to the lessor