Fiscal challenges addressed by lease-financing include:

Financial Flexibility — Budget deficits, reduced federal support and resistance to increased fees and taxes cause State Governments to prioritize their use of limited resources. Lease-financing provides operating flexibility and enables State Governments to finance the acquisition of equipment with useful lives to short to fund with long term bond proceeds.

Level Budgeting — Budget stability is highly advantageous for departments reliant upon fee-based services. By spreading payments out over time, lease financing links a repayment obligation to the charges received for delivering services, while helping to maintain a stable and predictable budget across several fiscal periods.

Constrained Resources — Departments and agencies may not have sufficient baseline funds to replace essential equipment that suddenly fails, or to supplement augmentation requests that have been denied for fiscal reasons. Lease-financing is a cost-effective tool that can be used to finance large projects that would be problematic to fund out of current revenues.

Benefits of lease-financing include:

• Strategy that reduces cost in one budget year and spreads project costs over multiple periods
• Allows an asset to be paid for as it is used without the commitment of a long term acquisition
• Contributes to the preservation of established budget allocations
• Eliminates Surplus Property Disposal Problems

Providence Capital’s lease-finance payment plans can be provided directly to State Government agencies, and also via payment plans that we might offer through suppliers that you select.