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 25 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:
- Computer Equipment
- Construction Equipment
- Electrical Generators
- Energy Systems
- Fire & Rescue
- Homeland Security
- Hospital & Medical
- Laboratory Equipment
- Maritime Equipment
- Modular Buildings
- Office Furniture
- Public Safety
- Real Property
- Security & Surveillance
- Water Reclamation
What leasing options or types of leases are available?
- 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.
- 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.
- 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.