An operating lease is particularly attractive to companies that continually update or replace equipment and want to use equipment without ownership, but also want to return it at lease-end. It can help avoid an obligation to technology passed its prime.

This kind of lease usually results in the lowest payment of any financing alternative and is an excellent strategy for bypassing capital budgeting restraints. It typically qualifies for off-balance sheet treatment and can result in improved Return On Asset (ROA) due to a lower asset base. It can also result in higher reported earnings in the early years of the lease.

If you need the flexibility of a lease with a fixed purchase option, a finance lease might be the solution. This type of lease is a full-payout, non-cancellable agreement in which the lessee is responsible for maintenance, taxes and insurance. Finance leases are most attractive in cases where the lessee wants the tax benefits of ownership or expects the equipment's residual value to be high. The term of a finance lease tends to be longer, nearly covering the useful life of the equipment.

Leasing commercial equipment with a true lease means you will not have legal ownership of the equipment, but will have use of it for the term defined in the lease. If the equipment you need is subject to rapid advancements in technology, such as computers, the true lease could be the best option. Financing commercial equipment with this lease option can mean lower monthly payments and in many cases tax deductions for lease payment amounts.

Essentially, a TRAC lease is a true lease designed to finance licensed, titled motor vehicles (over-the-road tractors, trailers, trucks and buses) used for business. The TRAC is a stated amount in the lease agreement representing the estimated value of the equipment at the end of the lease. At lease-end, the vehicles can be purchased for the TRAC amount or sold to a third party. If the lease-end resale price is more or less than the TRAC value, you receive the excess or pay the difference.

Municipal leasing allows municipalities to acquire essential equipment quickly and conveniently without the need for expensive and time-consuming bond issues.

Vendor leasing is a contract or working relationship between Johnson Bank and an equipment vendor. It provides the ability to offer customer financing, which stimulates vendor sales and expedites the sales process.