No Cash Down Payment

These types of financing may provide for 100% of the equipment purchase price plus any related expenses.

No Public Debt Created
Since the lease payments due under the contract are subject to annual appropriation, the obligation created by the Lease is not subject to constitutional or statutory debt limitations. Since public debt is not created, voter approval for a lease/purchase should not be required.

Matching Cost with Revenue
Payment obligations correspond more closely to the useful life of the asset(s) financed by the governmental user. A full cash purchase price charges one-year’s operating budget with the cost of an asset, which is typically in use for several years.

Flexibility
Shorter lead time to arrange financing, as the procedural aspects of traditional bond financing may be complicated by rigid constitutional requirements which serve capital project financing control, but are inflexible for asset acquisitions.

State Approved Contract
Empire can transact with the municipal entity usually by using the state drafted and approved lease agreement thereby eliminating time involved in revising lease agreements to satisfy public officials (District Attorney, City Manager, etc.)