Using a True Lease or a TRAC Lease

<b><I>Potential Complications in Bankruptcy</I></b><p>An equipment financing company will often decide whether it wants a transaction to be a true lease or a TRAC lease as opposed to a retail sale. A good reason to be able to make the distinction is to determine what might be the best structure for an equipment financier. This article explores the differences.

9 minute read June 02, 2017 at 12:03 AM
By
Deirdre M. Richards
Using a True Lease or a TRAC Lease

An equipment financing company will often decide whether it wants a transaction to be a true lease or a TRAC lease as opposed to a retail sale. A good reason to be able to make the distinction is to determine what might be the best structure for an equipment financier.

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