Non-Dexter Laundry Equipment
While financing equipment manufactured by Dexter Laundry is our primary focus, we do offer financing for non-Dexter Laundry equipment, as well. For these markets, we offer a competitive leasing program.
- Replacement equipment projects may qualify for financing up to 100 percent of list price (including freight, delivery, installation, tax, etc.).
- Leases will be written for terms of 24, 36, 48 or 60 months.
- Minimum amount financed is $3,000.
- First and last lease payments remitted in advance.
- Monthly payment will be set up on automatic draft from bank account.
- Leases may be prepaid in full at any time. Prepayment amount is determined by discounting the then remaining obligation as per lease agreement. Partial prepayments are not accepted.
- Leases may be assumable by a third party, subject to Dexter Financial Services approval. However, original lessee remains obligated until lease is paid in full.
- Landlord waiver and consent form required for transactions greater than $75,000, but less than $150,000.
- Agreement to assign real estate required for transactions greater than $150,000.
- Proof of insurance and copy of building lease required for transactions greater than $75,000.
Leasing establishes a fixed monthly payment for the duration of your lease. Changes to prime rate do not affect the monthly payment of a lease.
Leases are written with one of three purchase options; $1, 10 percent or fair market value (FMV). With a $1 purchase option, title to the equipment is transferred to you for $1 upon satisfaction of contracted monthly payments. With a 10 percent purchase option, you pay a reduced amount monthly, but then must pay 10 percent of the original lease amount to obtain the equipment title at end of your lease. FMV purchase option leases are very similar to 10 percent purchase option leases. However, upon satisfaction of monthly payments, you may obtain equipment title by paying the then FMV. These leases are commonly referred to as true leases for tax purposes. You may choose any of the above options, but must do so prior to documentation stage.
Sales tax is charged differently depending on the state in which the equipment is located. Additionally, the purchase option you select will generally determine how sales tax is collected. Please call us with any questions you have regarding sales tax treatment of leases in your state.
In some cases, lease payments may be fully deductible for income tax purposes. However, this area of the tax code is subject to varied interpretations. Therefore, we recommend that you speak with a qualified tax advisor.
Several states assess an annual personal property tax to equipment. You are responsible for reporting and remitting property tax for equipment financed via promissory note, $1 purchase option lease and 10 percent purchase option lease. We will report and remit property tax for equipment financed under a FMV purchase option agreement, and we will then invoice you for a like amount.