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.

20 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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