Federal Leasing

Federal Leasing

A Federal Lease is an alternative to an outright purchase. It allows Federal Agencies to obtain necessary property and other assets while still meeting their budgetary constraints.

Most types of property can be financed with a Federal Lease and includes computers and software, office equipment, communications equipment and vehicles.

The term of a Federal Lease is typically one to three years, depending upon the useful life of the property and the needs of the Federal Agency. During the term of the lease, the Agency makes payments either monthly, quarterly, or annually. However, we will arrange for flexible payment terms that meet the specific needs of the Federal Agency.

Most agencies of the Federal Government use leasing to acquire property and other assets. In addition, some contractors to the Federal Government use Federal Leasing to acquire the property needed to fulfill their contracts. Non-appropriated Fund Entities can also obtain financing.

Usually, the Government Agency has identified its need for property and has either chosen a vendor or has requested proposals from several suppliers. We work with vendors who respond to Requests for Proposals (RFP) and Request for Quotations (RFQ) by providing lease rates and assistance with bid preparation. Contact us for assistance and information.

Lease to Own Plan (LTOP) - With an LTOP, the Federal Agency makes regular payments for the lease term. At the end of the lease term, the agency owns the property.

Lease With Option to Purchase (LWOP) - Under an LWOP, the Federal Agency makes regular payments for the term of the lease and has the option to purchase the property at the end of the lease term for a specified price. If the agency chooses not to exercise its option to purchase, the property can be returned to the leasing company or the lease can continue for an additional term(s).

Straight Lease or Rental - With a straight lease or rental, the agency makes regular payments for the term of the lease. At the end of the lease term, the agency either renews the lease for an additional term or returns the property to the leasing company.