Federal Lease AND RECEIVABLE Financing
Doyle & Bachman LLP represents contractors, banks, insurers and corporations in all aspects of federal lease and receivable financing.
Each year U.S. Government agencies lease billions of dollars worth of equipment and software, including aircraft, vehicles, computers, telecommunications systems, office machines, furniture, and energy conservation systems. Most of these assets are internally financed by federal agencies through appropriations, but some are financed in the private market.
Leasing allows federal agencies to better match internal funding to the actual time of usage of assets, thereby spreading the cost of the asset acquisition across multiple fiscal years. If properly structured, leasing may also permit agencies to utilize operating funds rather than scarce capital funds. Leasing may also protect the federal lessee from the asset's technical obsolescence and disposal costs.
In order to lease assets to the government, a federal prime contractor typically teams with a leasing company. The prime contractor sells the government's lease payments and the residual value of the leased asset (subject to the government's rights therein) to a leasing company. This structure permits the prime contractor to book its sale of the asset up front rather than receiving lease revenue over the lease term. The government's lease payments can be assigned directly to the leasing company under the Assignment of Claims Act.
What does Doyle & Bachman offer our clients?
Doyle & Bachman LLP has extensive experience in all aspects of federal lease and receivable financing. We represent prime contractors, investment banks, commercial banks, insurance companies and leasing companies in all aspects of federal lease and receivable financing. Services that Doyle & Bachman LLP offers our clients in this area include:
- preparation of GSA schedule proposals for leasing and negotiating award of schedule contracts for leasing
- advice and counseling regarding structuring of federal lease financing transactions, including tax, accounting, and UCC issues
- advice and counseling regarding credit risks of federal lease financing, including due diligence on specific transactions
- preparation of federal lease transaction documentation, including master purchase agreements, teaming agreements, vendor program agreements, and loan and securitization documentation
- software site license lease financing documentation
- service or maintenance receivable financing documentation