• Protection against obsolescence through easy upgrades.
• Lower monthly payments
• 100% financing
• Potential tax advantages
• Conservation of working capital
• Preservation of existing credit lines
• Customized monthly payments, lease terms, purchase options and deferral programs.
• Pre-approved lease line of credit for qualified customers
• Simplified payments-equipment, service and supplies all in one.

What Kind of Lease is Right for You?

Types of Leases

When considering the various types of leases being offered, the lease terminology may seem complex at first. There is often confusion over whether the lease is being considered from an accounting, tax or legal perspective. An accountant, the IRS, and a tax attorney may use different terms for the same transaction. To keep terminology clear it helps to consider from which perspective the participants are coming.

Another key point to remember when thinking about the type of leases, is the critical importance of the lessee’s intent in regard to the equipment. If the lessee’s intent is to own the equipment at the end of the lease, as with a "Dollar Out" or "10%" lease, then the lease is considered a "finance lease." With a "true" or "tax" lease the implicit intent of the lessee is assumed to be to use the equipment during the lease term; the risks and benefits of the equipment are NOT substantially transferred to the lessee by the end of the lease.

True Lease/Fair Market Value (FMV)

True lease is another term for a tax lease where, for IRS purposes, the lessor, or Thermo Capital Company qualifies for the tax benefits of ownership and the lessee, or customer, is allowed to claim the entire amount of the lease payment as an operating expense or tax deduction. This type of lease provides the customer with the lowest monthly payment.

At the end of the lease term, you have the following options:

• Return the old equipment and replace it with new equipment (and enter into a new lease)
• Continue to lease it for a monthly amount based on the Fair Market Value*
• Purchase the equipment at Fair Market Value
  Return the equipment to Thermo

*Fair Market Value is the price for which the equipment could be rented or sold in a transaction between unrelated parties. The Fair Market Value is determined at the end of the lease.

A True Lease is a good option for a company that wants to control its budget with the lowest available payment, expecting growth, or wants to take special tax benefits associated with an operating expense.

Finance Lease

Under a Finance Lease, the lessee is able to claim the benefits of ownership for IRS purposes (Thermo Fisher Scientific is the owner). That means a customer is entitled to claim depreciation and interest expense deductions in lieu of an operating expense deduction. Thermo offers two types of finance leases, the 10% purchase option and the $1.00 purchase option.

10% Purchase Option:

This type of lease is for customers who want the flexibility to purchase, continue leasing, or return the equipment, but wish to lock in their costs at the time the lease is initiated.

At the end of the lease term, the customer may do either of the following:

• Replace the equipment with new equipment (and enter into a new lease agreement)
• Purchase the equipment for 10% of the original financed amount
  

$1.00 Purchase Option:

This type of lease is suited to businesses who plan to keep the equipment beyond the lease term.

At the end of the lease term, the customer has two options:

• Replace the equipment with new (and enter into a new lease agreement
• Purchase the equipment for $1.00

A Finance Lease may be the right choice for a company that knows the equipment will meet its needs longer than the term of the lease, and therefore knows now that it wants to buy the equipment at the end of the lease.

Products and Programs

Flexible lease terms from 12-60 months with low monthly payments.

Fair Market Value/Operating Leases
This type of lease offers your customers the lowest monthly payment possible. At the end of the lease the customer has the option to purchase, renew, upgrade or return the equipment. This lease also allows your customer to enjoy the tax benefits of a monthly payment deduction while oftentimes qualifying for FASB 13 off-balance sheet classification. It is the preferred option for those concerned about equipment obsolescence.

One Dollar Purchase Option Lease
A lease that combines some of the benefits of leasing with those of ownership. The monthly payment is higher than the fair market value lease but the customer owns the equipment at the end of the lease for $1.00. This is the preferred option for customers who believe that they will want to own the equipment at the end of the lease term.

90 Day Deferred Program
The 90 day deferred financing program allows your customer ninety days of payment free financing with no advance payments required. This lease structure is useful for businesses that acquire income-producing equipment that take a few months before generating revenues.

Please inquire about the following customized programs that are also available:

• Bundled programs with service
• Cost per use/procedure
• Step lease/variable stream
• Short term rental programs
• Pre-approved Master Lease lines of credit

Please contact us for more information:
Toll-free in North America: 1-800-986-9731
Outside North America: + 781-622-1000

Mike Bartlett - X 3
Alex Johnson - X 4
Suzanne Robinshaw - X 8

Fax:
Toll-free in North America: 1-800-952-4490
Outside North America: + 781-622-1199