Core Capital Finance
When developing discrete fixed-asset and capital project financing plans, our team puts your needs first.
Expertly constructed term debt and leasing solutions.
First Commercial Bank’s Core Capital Finance group is ready to tailor lending solutions to meet your specialized fixed-asset financing requirements. With an average team tenure of 25 years, we are experts in equipping commercial enterprises, municipalities, and nonprofit organizations with term debt and lease financing alternatives. Because every company’s needs are different, we’ll work with you on a personal level to determine the best path forward for capital project financing and more. See below for an overview of our capital finance solutions.
Capital finance solutions
LEASE AND LOAN LINES OF CREDIT
- Creates a separate funding mechanism to purchase equipment up to a 12+ month period
- Interest only payments due on drawn balance only
TAX LEASE PRODUCTS
- Transfers risk of ownership
- Rental payment deductibility - subject to customer tax treatment
- Negotiated purchase option, or lease renewal term upfront
TAX INCREMENT FINANCING (TIF)
- Designed by state-specific statute
- Infrastructure development financing for new plant projects
- Local municipality sponsorship
OPERATING / RIGHT OF USE LEASE PRODUCTS
- Meets FASB requirements for “Off-Balance Sheet” or “Right of Use” accounting treatment
- Negotiated purchase option, or lease renewal
CAPITAL LEASE AND LOAN PRODUCTS
- Up to 100% financing
- Fixed- and floating-rate options available
PAYMENT IN LIEU OF TAX (PILOT)
- Designed by state-specific statute
- Lease payments made to local municipality vs. local taxes (e.g. personal property tax)
NON-APPROPRIATION LEASE
- Annually renewable or year to year lease
- Does not encumber municipal fiscal resources in future years, as it is not considered debt
REVENUE PLEDGE LEASE/LOAN
- A revenue lease/loan is supported by a revenue stream produced by a specific municipal facility, such as a sewer or water district
- Because revenue leases/loans are self-liquidating and are not backed by the full faith and credit of the municipality, they most often do not require voter approval
TAX-EXEMPT CONDUIT LEASE/LOAN
- Not-for-profit entities such as hospitals and universities are the most common users
- Other charitable organizations with an IRS 501(c)(3) designation may qualify
GENERAL OBLIGATION LEASE/LOAN
- The municipality is obligated to make all payments for the full term
- The municipality retains title to the equipment (or capital improvement)
INSTALLMENT PURCHASE AGREEMENT
- Municipal limitation by statute
- The municipality is obligated to make all payments for the full term
- The municipality retains title to the equipment (or capital improvement)