Whether you choose to contract with us directly or utilize our financing plans in connection with the payment options offered by a supplier(s) of your choosing, Providence Capital's financing tools offer solutions that enable you to choose a financing method that is compatible with your short and long term fiscal needs. Providence Capital offers a variety of financing tools; each one capable of being tailored to meet your specific needs.

Project Finance and Asset Acquisition Tools most commonly used:

Tax-Exempt Lease-Purchase Financing
Lease purchase financing is generally structured as an installment loan. Lease payments are divided into principal and interest components, and the purchase price of the asset is amortized over the term of the financing. This form of financing is suitable for equipment acquisitions or capital projects that the municipality intends to own at the end of a financing term. Financing terms usually range from two to ten years depending on the asset's useful life and the municipal entity's budget requirements.

Non-Tax-Exempt Lease-Purchase Financing
Non-Tax-Exempt Financings are structured as an installment loan. Lease payments are divided into principal and interest components, and the purchase price of the asset is amortized over the term of the financing. This form of financing is suitable for equipment acquisitions or capital projects that: (a) provide more than 10% of the benefit of use to a non-governmental entity; or (b) have 10% or more of the funds that repay the obligation contributed by federal sources or a non-governmental entity. Due to the nature of the benefits derived from the asset, the interest rates charged are calculated at taxable interest rates.

True Lease or Operating Lease
A true lease, or operating lease, is simply a contract to rent property for a period of time shorter than the property's useful life. Unlike a tax-exempt lease, operating lease payments are not divided into principal and interest components. An operating lease is intended to compensate the Lessor for use of the property, not to amortize the purchase price of the asset. This type of lease typically provides the lowest monthly payment, and is structured with the following end of the lease options:

• Replace equipment with the latest technology (and enter into a new lease)
• Renew at a monthly amount based on the equipment's fair market value
• Purchase the equipment at its fair market value
• Return the equipment to the Lessor

Finance Lease or Capital Lease
This type of financing provides for the periodic use or rental of equipment over time. This type of lease enables a municipal entity to easily acquire the equipment at the end of the lease term, and is structured with the following end of the lease options:

• Replace equipment with the latest technology (and enter into a new lease)
• Purchase the equipment for $1.00
• Return the equipment to the Lessor

Technology Refresh Lease
A Technology Refresh lease enables a municipal entity to effectively manage the technological changes of information technology equipment. This type of lease offers:

• The flexibility to easily migrate to the latest technology
• The advantage of an easy-to-budget monthly payment
• The ability to avoid technological obsolescence

Budget Expansion Tools most commonly used include:

Master Lease Financing Program
A master lease a cost-effective and speedy funding tool to fund projects or acquire equipment as needed in the future with a document already in place. This financing tool is best suited for: (i) equipment that is to be continuously acquired over several periods, or (ii) a series of smaller equipment purchases that can be conveniently, and cost-effectively acquired under one document.

Master Lease Refinancing Plan
A master lease refinancing plan is intended to take advantage of the reductions in interest costs that may be realized on existing leases by entering into a new lease at current market rates; or to combine and restructure the timing or amounts of rental payments on an existing lease(s).