Services for the Public Sector

Tax-exempt lease purchase financing is a simple and low-cost way for state and local governments, their agencies and other political subdivisions/taxing districts to finance equipment and capital projects.

A proven, cost-effective alternative to debt financing, leasing enables public entities to acquire the equipment they need without resorting to complex and time-consuming revenue-raising campaigns. It can also be made available to an otherwise unqualified organization (such as a not-for-profit local hospital) that is affiliated with a qualified public entity.


Lease purchase financing may be provided at low, tax-exempt rates to schools and governmental entities.

Considered a current expense

In most circumstances, qualified tax-exempt lease purchase financing does not constitute indebtedness according to state law, and it is considered a current fiscal expense.

Minimal cost

Tax-exempt lease purchase financing is often more cost effective than bonding, especially when comparing the aggregate cost, which includes issuance fees.

Facilitates budgeting

Lease purchase financing allows a public entity to allocate its acquisition costs over several fiscal years. Because leasing is provided under terms corresponding with the economic useful life of the asset, you can feel confident that you won’t be paying debt service on an asset that is no longer in use.

A total financing solution

Tax-exempt lease purchase financing offers 100% financing, and is typically more flexible with respect to payment structure than traditional bond financing.

Conserves working capital

Effective government demands state-of-the-art technology and equipment. Lease financing at low tax-exempt rates enables a public entity to acquire needed technology and equipment without burdens on user fees and financial resources.

Offers versatility

In many instances, lease financing can be used for capital projects, or even as a source of working capital, by funding existing debt and/or other leases.

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