1. Who is eligible to use the Bank of America (BoA) Lease Program?
Any department or research center looking to acquire capitalized assets, specialized equipment, or enterprise software.
2. What is the minimum purchase amount for a lease?
Generally, leasing is most effective for capitalized assets (typically items exceeding $5,000 with a multi-year lifespan). For smaller purchases, traditional procurement methods are usually more cost-effective.
3. Can we lease assets we already purchased?
Yes. BoA can finance assets Lehigh has already paid for and create an asset monetization lease. Engage Purchasing to review previous purchases and budgets with BoA to identify what assets are eligible. This “lookback” generally should be from the last 12 months and would allow you to spread the cost over several years.
4. How does the Tax-Exempt benefit work?
As a non-profit educational institution, Lehigh can access municipal-style leasing rates. This means the interest rates offered through BoA are typically lower than standard commercial loans, as the interest paid is exempt from federal income tax for the lender.
5. Can we lease software as well as hardware?
Yes. The program covers software licensing and implementation costs. This is particularly useful for large-scale platforms that require significant upfront investment but provide value over several years.
6. Who owns the equipment at the end of the lease?
The program offers various "end-of-term" options. Depending on the agreement, you may have the option to:
- Purchase the equipment for a nominal fee (e.g., $1)
- Return the equipment to the vendor (an advantageous option for tech that becomes obsolete quickly)
- Renew the lease for an extended period
7. How do I request a cost-benefit analysis?
Contact BoA’s Leasing Program Manager (Siyani Fullerton - Siyani.fullerton@bofa.com). BoA can provide a Purchase vs. Lease Financing comparison, allowing you to see the impact on your annual budget.