Leases
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Agricultural Leases
Choosing between a lease or loan can significantly impact your financial strategy.
At Nexus Capital, we have the expertise to guide you toward the option that best aligns with your goals. Whether you’re seeking lower payments for improved cash flow or competitive interest rates to reduce expenses, our lease programs offer the flexibility you need.
We offer a range of lease options, including tax leases designed to maximize your tax return benefits, as well as programs that require minimal to no down payments. With Nexus Capital, you gain access to a range of solutions tailored to the agricultural sector’s unique challenges.
First Amendment Lease
Under a First Amendment lease, the farmer has the flexibility to establish an equipment lease with reduced initial payments. At the lease’s conclusion, there are two choices: either purchase the equipment outright for a predetermined residual amount or opt for an automatic 2-year renewal with the residual value determined based on market conditions and the financing company’s options.
At the conclusion of the initial lease term, the lessee has the choice to either acquire the equipment or extend the lease, although the specific renewal options may vary. This lease type does not impose hour limits, and the residual value is determined based on equipment usage hours. The buyout schedule serves as an estimate, is not included in the lease agreement, and quotes are for discussion purposes, subject to potential rate and term adjustments. The lessee is responsible for any applicable taxes, such as sales tax or personal property tax.
TRAC Lease
A TRAC lease is a commercial leasing option primarily utilized for financing vehicles and equipment. It enables the lessee to establish a predefined residual value for the equipment or vehicle at the lease term’s conclusion.
The lessee guarantees the residual. Upon lease termination, the customer has the option to buy the equipment, extend the lease, or return it to the lessor. If the equipment is returned and sold for more than the amount owed, the customer will receive the excess. In the case of a sale for less than the owed amount, the customer is responsible for covering the difference.
Walk Away Lease
This lease type may add hour restrictions, and the residual value is determined based on equipment usage hours. The lessee is responsible for taxes, including sales and personal property tax.