> Finance Program > Leasing Program > Interest Payment Calculator
> Depreciation Estimator
Today many more customers are looking into leasing as a means to acquire equipment. The reasons for this include: the ability to expense the monthly payment, the reduced initial cash outlay required with most leases, the off balance sheet nature of leasing can protect bonding capacity, the need to match cash flows with a particular job, and the ability to acquire new technologically advanced equipment, thereby reducing maintenance expenses on a regular basis. All of these are good reasons to consider leasing your next piece of Komatsu equipment. As always, check with your tax and accounting advisors to determine if leasing is the right alternative for you.

If you have decided that leasing is the correct acquisition alternative for you, Komatsu Financial has a lease program to fit your needs. All of our leases offer you the benefits of a low initial cash outlay, usually one payment in advance and a one-payment refundable security deposit, competitive monthly payments, monthly invoicing or an electronic payment plan option, and at lease termination, the ability to extend the lease, return the unit, or to purchase it.

Our lease programs include the following alternatives:
Fair Market Value Lease
This lease program does not offer you a predetermined purchase option but allows you, at lease termination, to purchase the unit for its then fair market value.
Operating Leases
This lease alternative meets IRS and Accounting criteria for a lease, including: no automatic ownership transfer at lease termination, no bargain purchase option, the lease term does not run longer than 75 percent of the estimated economic life of the equipment, and the present value of the minimum lease payments does not exceed 90 percent of the original purchase price of the equipment. The circumstances of each lease should be reviewed with your tax and accounting advisor to determine if they qualify under these guidelines.
Finance Lease
A lease that contains a bargain purchase option or does not meet all of the IRS or Accounting criteria to qualify as an operating lease.
Komatsu Financial Advantage Leasing
This is a lease program that is available exclusively through your Komatsu distributor. It offers predetermined renewal, purchase, and return options.
Some of the benefits of leasing include:
  • Offers the potential for favorable tax treatment (consult your tax advisor)
  • Preserves bonding capacity with the potential for off-balance-sheet financing
  • Lower monthly payments improve cash flow and keeps your operating expenses to a minimum
  • Protects against product obsolescence and technological advances
  • Allows you to match equipment acquisition to specific job requirements
  • Allows you to purchase the leased equipment at fair market value or predetermined options
    Municipal Leasing
    Komatsu Financial Municipal Lease program is designed for governmental agencies who wish to purchase equipment and pay for it over time. The program offers a non-appropriation clause and very competitive finance rates. Generally, all tax-exempt governmental bodies qualify. This includes water and irrigation districts, port authorities, state colleges, and others not usually considered "municipalities." However, since laws vary from state to state, certain customers may be excluded. Financing can be arranged with terms from two to six years with payments in advance or arrears. Payments can be made monthly, quarterly, semi-annually, or annually to meet the municipalities cash flow. Some of the benefits of Komatsu Financial's municipal lease program include:
  • Offers competitive rates without the underwriting costs or administrative burdens of issuing bonds
  • Helps maintain a strong debt rating while minimizing overall borrowing costs
  • Helps expand your purchasing power quickly and easily by obtaining equipment through current budgets
  • May eliminate the need for lengthy legislative and public hearing processes required with traditional funding sources
  • Flexible payment schedules to fit your current cash flows
    Komatsu Financial Payment Instructions
    Installment payments may be mailed to the following address:

    Express Mail Instructions
    (i.e., Federal Express, UPS, etc.)

    Komatsu Financial - Lockbox 99303
    c/o Bank of America Illinois
    99303 Collection Center Drive
    Chicago, IL 60693

    Regular U.S. Mail Instructions
    Komatsu Financial
    P.O. Box 99303
    Chicago, IL 60693

    Correspondence only (No payments please):
    Komatsu Financial
    P.O. Box 7049
    1333 Butterfield Road - Suite 600
    Downers Grove, IL 60515-7049

    **Please include account/contract number on all payments and correspondence.