Over the past several years, budgets for many governments have not included new equipment simply because funds were not available. A P3 Connection solution provides an excellent way to purchase necessary equipment without a substantial cash outlay by the Government Partner.
In much the same way as other P3 Connection solutions, Equipment can be obtained via a long-term lease and purchased at the end of the lease, typically for $1.00.
Long Term leases (up to 30 years) result in lower payments and can be used for virtually any type of equipment required by the Government Partner.
Criteria and Terms
Equipment Type: Any type of equipment will be considered
Minimum Cost: $10MM
(lower equipment cost will be considered
and multiple pieces of equipment can be
combined into one transaction)
Maximum Cost: No maximum
(Based on credit of Government Partner)
Advantages for your Community
Save Your Cash: Government Partner is able to utilize their current cash reserves for other
projects or expenses due to ZERO Initial Cost to acquire equipment.
Flexible Terms: Ability to pay for the equipment over an extended period, up to 30 years.
Accounting Benefit: Lease payments are typically considered “business expenses” instead of a
liability or long-term debt. This results in a better balance sheet which does
not impact your bonding capacity.
Less Maintenance: New equipment equals less maintenance and better safety for Government
Purchase Option: Government Partner has the option of purchasing the equipment at the end of
the lease term, typically for $1.00.