What’s factored into the payment?

Full Service Tax Lease

  • Monthly sign (advertising) rental
  • Full maintenance, including cleaning, lamp replacement and maintenance of electrical or electronic components.
  • Zero-deductible, full, all-risk insurance
  • Property tax

Finance Lease

  • Monthly sign rental with a guaranteed end-of-lease residual.
  • Sign maintenance, including cleaning, lamp replacement and maintenance of electrical or electronic components

This Lease is Probably Better For You If…

Full Service Tax Lease

  • You regard signs more as advertising than business equipment.
  • You want YESCO to assume all risks of ownership.
  • You want a full-service, “no worry” lease.
  • You want a full tax write-off of lease payments.
  • You want simple bookkeeping.

Finance Lease

  • You regard signs more as business equipment than advertising.
  • You want to assume the risk of ownership.
  • You want to own the signs at the end of the lease.
  • Depreciation deductions are more advantageous to you.

Maintenance Provisions

Full Service Tax Lease

YESCO is obligated to respond within three business days to written maintenance requests.

Finance Lease

YESCO is obligated to respond within three business days to written maintenance requests.

Ownership Considerations

Full Service Tax Lease

YESCO assumes all risks of ownership during the lease. Ownership does not automatically pass to the lessee at the end of the lease. Monthly payment is strictly a rental payment and is not applied toward ownership.

Finance Lease

The lessee assumes the risks of ownership and is responsible for providing insurance coverage and repairing damage. The lessee is responsible for property taxes. Ownership transfers after client has paid all monthly payments and the guaranteed end-of-lease residual.

Tax Advantages and Considerations

Full Service Tax Lease

  • 100% of deductibility of the rental payments. Lessee expenses payment as rental expense or advertising expense. Payments are deductible as they are made. Deductibility is not subject to complicated IRS rules for depreciation.
  • The net present value after tax cost of YESCO’s tax lease is often lower than other forms of financing. In most cases, the tax effect of leasing is realized faster than depreciation deductions when equipment is purchased.

Finance Lease

  • Regarded as a purchase agreement by the IRS and is subject to IRS rules for depreciation.
  • Lessee expenses the interest and maintenance portion of the monthly payment.

Business Advantages

Full Service Tax Lease

  • Keeps working capital working—cash flow freedom.
  • Long-term, fixed-rate financing protects operating budget from fluctuation of variable interest rates.
  • Provides peace of mind and reduces hassles. If the sign has a maintenance or damage-related problem, YESCO takes care of it with no additional out-of-pocket expense to you. No haggling over repair orders.
  • Extended payments allow the sign to pay for itself from future revenues.
  • Conserves bank credit lines.
  • Offers a hedge against inflating maintenance costs.
  • Guards against owning obsolete equipment due to advances in technology (ideal for signage incorporating electronic message centers).
  • Preserves ability to acquire new signs under restrictive loan agreements.
  • Simplified bookkeeping eliminates complicated and extensive depreciation records.

Finance Lease

  • Keeps working capital working—cash flow freedom.
  • Long-term, fixed-rate financing protects from fluctuation of variable interest rates.
  • If the sign has a maintenance (not damage) problem, YESCO takes care of it with no additional out-of-pocket expense. No haggling over electrical repair orders.
  • Extended payments allow the equipment to pay for itself from future revenues.
  • Conserves bank credit lines.
  • Offers a hedge against inflating maintenance costs.
  • You can own the sign at the end of the term.

Off/On balance sheet

Full Service Tax Lease

Lease can be structured to be off-balance sheet, if necessary to meet accounting requirements.

Finance Lease

Lessee records the lease for accounting purposes as a purchase, therefore it is on the balance sheet as an asset and liability.