TEG offers a wide range of financial products for commercial equipment, covering a huge range of industries. To better understand the most common product types, we've prepared a simple list for easy reference. Rental & Operating Lease A Rental/Operating Lease is an agreement to rent equipment for use in a business for a fixed period. It can be a cost effective financing strategy if the customer is continually upgrading equipment or if they are only interested in the use of the equipment rather than ownership. Upon maturity they simply return, purchase or continue to rent the equipment. Benefits of Rental/Operating Lease Off Balance Sheet Funding – payments can be treated as an operating expense and may be 100% tax deductible. Flexible End of Term Options allowing the customer to retain usage of the equipment. Customer can acquire more equipment for their dollar as they can afford more or better equipment. Finance Lease A Finance Lease provides 100% financing for the acquisition of equipment for use in a business. The funder agrees to lease a particular piece of equipment over a set term with a predetermined residual value. Upon maturity the customer can offer to purchase the equipment for the residual value. Benefits of a Lease 100% financing so the customer's working capital is preserved