Scenario 1

A contractor wanted to get his UltraMax® Series crushing plant on the job but didn't have a large down payment. A stated option lease was established, and the customer made an advance payment (equal to two monthly payments), then made equal monthly payments toward the purchase of the equipment. Under another program, the contractor would have had to pay 15% of the total equipment cost before the equipment could be delivered to the job site. By selecting the stated option lease, the contractor maintained cash flow for the duration of the contract while making his equal monthly payments. In doing so, he earned enough profits to pay off the crusher in a lump sum at the end of the lease.