Development of Lease Financing Proposals for Equipment and Capital Facilities
Many times local governments find
themselves in conditions that favor a lease
purchase financing as opposed to a general
obligation bond issue. The Company has
completed 340 Capital Facilities lease
financings during its thirteen year history
and has also financed School Bus and Equipment Lease Financing Programs of
the Missouri Association of Rural Education. Approximately 146 Missouri school
districts have benefited from those programs. Lease financing can be a useful way
to accomplish better cash flow management. Although interest rates for non-rated
leases are slightly higher than is true with general obligation bonds, it is a viable
financing method when voter approval of the general obligation bonds proves difficult
and the facilities needs are very pressing. L.J. Hart & Company typically analyzes the
lease financing method in comparison to a general obligation bond issue in order for the
issuer to see the differences. Our services in this area include the development of a non-profit
corporation or the selection of an existing one if applicable.
