Fiscal challenges addressed by lease-financing include:

Increased State Mandates – Structural deficits and greater pressures to provide more services with less resources compel a County Government to find more financing flexibility within their budgets, and to employ longer term planning to project benefits and deficits in ways that year-to-year planning does not. Tax-exempt leasing is a suitable and economic method for acquiring equipment and financing capital projects that are to expensive to fund from just one fiscal period.

Financing Flexibility – Shifts in state funding programs and a need for greater conservation of local revenues require a County Government to seek additional, economical methods to finance capital assets without sacrificing financial flexibility. Tax-exempt lease-purchase financing enables fiscally pressed County Governments to replace equipment and finance other projects in a reasonable manner that spreads scarce resources across the organization.

Cash Flow Management – Primary revenue sources, such as sales and property taxes, are collected only at certain times each year. Lease-financing offers flexible project funding strategies and spreads payments out over time which enables a County Government to better manage its cash flow throughout an entire fiscal year.

Benefits of lease-financing include:

• Strategy that reduces cost in one budget year and spreads project costs over multiple periods
• Contributes to the preservation of established budget allocations
• Cost-effective tool for acquiring a series of assets of low dollar amount
• Eliminates Surplus Property Disposal Problems

Providence Capital’s lease-finance payment plans can be provided directly to County departments and agencies, and also via payment plans that we might offer through suppliers selected by the County.