Extensive tax-exempt financing experience
Sun Microsystems Global Financial Services professionals are highly trained in the unique tax, document, and risk features of this specific marketplace. Most financing firms are experienced commercial finance providers, but few have the expertise in tax-exempt financing.
Simple tax-exempt program
If you have issued bonds before, you know that there are numerous parties, fees, and time commitments involved. Not with this program. Simplified documentation and no public offering minimizes the need for underwriters, investment bankers, financial advisors, rating agencies, and credit enhancements.
Easy prepayment
The Sun program gives you the option to prepay the financing at the time of any lease payment throughout the tax-exempt financing term. So if unexpected monies arrive in the future, you are not burdened with obligations and no call provisions.
Escrow option provides rate lock in
If your project requires that the infrastructure be delivered over time, consider an escrow financing option. This feature allows you to lock in your interest rate and payments while the project is being completed. Money is disbursed out of an escrow account as portions of the project become operational and typically your first payment is due when the project is complete.
Payment profiles match payments to cash flow
A convenient payment plan can be sculpted to meet your sensitive cash-flow periods. Monthly, quarterly, semi-annual, and annual are available, depending upon the project and your budget. Typically no down payment is required and, in some cases, your first payment can be delayed for up to a year.
Technology obsolescence protection
No matter how well you plan, there are some things you cannot predict, especially the pace and direction of technological development. To address these concerns, we've created a tax exempt program with end-of-lease options. This program offers an initial 24 or 36 month lease term with flexible end-of-term options:
- Pay the balloon payment
- Extend the term, or
- Return the equipment and enter into a new financing for new equipment while we handle the reselling of your old equipment for you
Tailored to benefit state and local governments
As a specialized form of financing available to certain state and local government entities, municipal leases have several unique characteristics. The lease typically has a $1.00 purchase option at the end of the lease term, and generally includes a non-appropriation clause which allows you to terminate the lease and return the equipment in the event of non-appropriation of funds. Because interest income derived from a qualifying municipal lease is tax exempt, we can pass this benefit to the lessee in the form of lower payments.
Stress-free for the private not-for-profit entity
Unlike conventional bond financing, which could take up to nine months to secure, our program quickly gets you the Sun equipment you need immediately. Sun Tax-Exempt Financing programs can help you minimize operational costs while maximizing the results you can achieve. Use our private not-for-profit master agreement, and you gain access to a credit line for future financing needs.
Get to full speed sooner
You can use the financial leverage of leasing to stretch your information technology budget and implement solutions sooner. Expenditures are then spread over time, rather than expensed in one lump sum, better matching costs to benefits. If a lack of information resources is holding back your plans, put our lease plans to work for for an immediate impact.
We have deep experience in nearly all 50 states and hundreds of local governments, educational entities, hospitals and not-for-profit organizations. Whether you're financing a small school district or a major state agency, our highly experienced leasing managers will help customize a financial solution to fit your needs.
Put the Sun suite to work for you
For more information on how Sun Microsystems Global Financial Services Tax-Exempt leasing programs can help you, call your Sun account team, Sun authorized reseller, or Sun Microsystems Global Financial Services at 1-800-786-0409 .
