Diversified Municipal Finance Corporation

“Serving the leasing needs of government for over 40 years”

   

 

 

What are some of the benefits of tax-exempt leasing?

The benefits of a tax-exempt lease include:

- Preservation of capital dollars for other projects for which leasing is not an option

- Preservation of debt limitations since the lease does not create long-term debt on the entity's books

- Enables improvement of cash flow

- Incorporates flexible structuring to meet budget  needs

- Lowered rates resulting from tax-exempt status

- Offers an alternative financing option without voter approval

- Provides complete project financing  including     soft costs)

- Spreads out the cost of an asset over the useful life of that asset or project

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