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| Federal Lease Financing |
The
U.S. federal government and its many agencies spend billions
of dollars in equipment acquisitions and services each year.
There are thousands of types of equipment that are deemed
as essential use. Our government's pursuit of these items
makes it the single largest purchasing entity on the planet.
Most agencies of the federal government use leasing to acquire
a portion or a majority of these assets on an ongoing basis.
What can Tatonka Capital offer in
a federal lease transaction?
Tatonka Capital Corporation has been a trusted source for
federal funding for more than a dozen years. Our experience
and understanding of the marketplace have allowed us to
guide hundreds of federal agencies and vendors through the
lease process quickly and efficiently.
As a privately held company, Tatonka can offer flexible
financing options while making prompt credit decisions and
forwarding payments to vendors without delay. Furthermore,
we qualify as a small business and a woman-owned business.
This can be especially helpful to vendors in a bid situation
in which they may be competing for contracts that have set-aside
provisions.
What is a federal lease?
A federal lease is an alternative to a direct purchase from
the vendor or manufacturer. It enables federal agencies
to acquire equipment essential to their operations without
buying it outright.
Why use federal lease financing?
When budgetary constraints challenge government agencies
that must purchase new equipment, an alternative method
of acquiring that equipment is necessary. Federal lease
financing allows these agencies to get the equipment required
today while paying for it over time based upon their cash
flow. Leasing allows government buyers to leverage their
budget dollars.
Who can use a federal lease?
All agencies and departments of the federal government,
along with most contractors dealing directly with these
entities, can enter into a federal lease agreement.
How can companies contracting with
the federal government use this program?
The Assignment of Claims Act allows for businesses that
have a contract in place with the federal government to
acquire equipment to fulfill that contractual obligation.
The contractor then assigns the stream of payments from
the government to Tatonka Capital to satisfy the lease payments
for the equipment.
What types of equipment can be leased?
Almost any equipment that is deemed as “essential
use” by the federal government is eligible for lease
through Tatonka Capital. This list includes, but is not
limited to:
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Computer Equipment
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Construction Equipment
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Electrical Generators
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Energy Systems
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Fire & Rescue
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Homeland Security
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Hospital & Medical
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Laboratory Equipment
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Maritime Equipment
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Military
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Modular Buildings
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Office Furniture
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Public Safety
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Real Property
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Security & Surveillance
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Telecommunications
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Transportation
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Vehicles
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Water Reclamation
What
leasing options or types of leases are available?
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Lease to Own Plan (LTOP)
The federal agency makes regular scheduled payments over
the term of the lease with ownership of the equipment
transferring to that agency at the end of the term.
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Lease
with Option to Purchase (LWOP)
Following the term of scheduled payments, the federal
agency has the option to purchase the equipment at a specified
price or return it to the leasing company.
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Rental
Agreement or Straight Lease
With certain types of equipment, the federal agency makes
rental payments for a fixed term, during which no equity
accrues on the equipment. At the end of the lease term,
the agency may either renew the lease or return the equipment
to the lessor.
The length or term of these leases can be between one and
fifteen years, depending upon the type of equipment being
financed and its useful life. Most leases are structured
for a two to seven year term. Payments can be set up on
a monthly, quarterly or annual schedule depending on the
specific needs and budget of the federal agency.
Will Tatonka Capital work directly
with vendors on federal transactions?
One of our specialties in the federal marketplace is developing
and supporting vendor programs targeting federal business.
Tatonka Capital has extensive experience in dealing with
all aspects of bidding, quoting, structuring and documenting
throughout the federal lease process. Vendor payments are
made promptly as we fund all of our own transactions directly
without any “red tape”.
Can Tatonka Capital work with the
GSA Schedule?
Yes, we can easily conform to the guidelines and requirements
of the GSA (General Services Administration) Schedule on
any transaction. We have experience with mandated GSA pricing
along with predetermined GSA lease payments. Based upon
properly structured GSA contracts, the paperwork originates
with the government’s contracting officer and the
lease documents are replaced by a single purchase order.
Does federal lease financing require
the use of a GSA Schedule?
No. There are no requirements that stipulate that a contractor,
vendor or federal agency must use the GSA Schedule for any
acquisition. Tatonka Capital can assist all of these entities
with any transactions outside of the scope of the GSA. In
many cases, we can be of even more value on these leased
acquisitions because our guidance helps keep the deal on
track in the absence of formal government guidelines.
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