Flow of Capital - Lessor Advantages

Lease profits expand assets of your captive bank

Your role as the “lessor” through ownership of your captive leasing company also enjoys significant financial and operational advantages. Profits from your equipment leases flow into your captive bank.

Your captive leasing company captures interest payments normally made to outsiders.  It can generate money from your company without high personal income or payroll taxes and protect your assets from potential litigation problems.  The leasing company’s paper trail can protect your companies from potential IRS problems.

Plus, here’s the list of things you DON’T have to be concerned about in operating your captive leasing company:

• No lease acquisition costs 
• No delays with loan committees or credit investigations.
• No advance deal brokering to a nonrecourse lender or other third party.
• No equity investor issues.
• No UCC-1 or UCC-3 filings.
• No insurance coverage expirations to track.
• No collection issues or bad debt reserves
• No paperwork – THE ADMINISTRATORS DO ALL THE WORK!

Every agricultural operator should also be in the banking business, which can be far more profitable than the underlying business.  Your captive leasing company extends your involvement in banking to assure long-term growth of your captive bank.

Remuda Financial stands ready to guide your entry into captive banking and your captive leasing company.  Contact us anytime for a direct, personal explanation.

Next Step: Flow of Capital - Services Available