A glossary of lease options available from IBM Global Financing
Term Lease
Option B - Standard true lease structure for commercial customers. These leases are usually quoted with a term from 24 to 60 months with a fair market value purchase option at the end of the lease.
Option B' - Conditional sale lease structure for commercial customers, usually quoted with a term from 24 to 60 months. This structure contains a pre-stated bargain purchase option. Full Payout (FPO)
Option B+ - Conditional sale lease structure for commercial customers, usually quoted with a term from 24 to 60 months, with a fair market value purchase option at the end of the lease.
Option B$ - Conditional sale lease structure for commercial customers, usually quoted with a term from 24 to 60 months, with a $1.00 end of lease purchase option. Full Payout (FPO)
Option G - True lease structure for State and Local customers. The lease rate is equal to an Option B lease rate plus an uplift for personal property tax, non-appropriation risk, casualty loss, and state sales tax. Fair Market Value (FMV)
Option G' - Conditional sale lease structure for State and Local customers plus an uplift for personal property tax, non-appropriation risk, casualty loss, and state sales tax. These rates are typically lower than Option B$ rates since the interest income earned by ICC on these transactions is exempt from federal income taxes. This option has a $1.00 end of lease purchase option. Full Payout (FPO)
Option L - Conditional sale lease structure for commercial customers who wish to finance used equipment. This option is usually quoted with a term from 12 to 60 months, and has a fair market value end of lease purchase option. Full Payout (FPO)
Option LG - Conditional sale lease structure for State & Local customers who wish to finance used equipment. This option is usually quoted with a term from 12 to 60 months, and has a fair market value end of lease purchase option. Full Payout (FPO)
Option S - Financing of IBM software or services for Commercial customers. Full Payout (FPO)
Option S' - Financing of IBM software or services for State & Local customers. These rates are typically lower than Option S rates since the interest income earned by ICC on these transactions is exempt from federal income taxes. Full Payout (FPO)
Option T - Loan to finance non-IBM products and services, or termination charges for Commercial customers. Full Payout (FPO)
Option T' - Loan to finance non-IBM products and services, or termination charges for State & Local customers. These rates are typically lower than Option T rates since the interest income earned by ICC on these transactions is exempt from federal income taxes. Full Payout (FPO)
Installment Payment Master Agreement (IPMA)
Option I - Secured term loan to Commercial customers for IT equipment.
Option IG - Secured term loan to State & Local customers for IT equipment. These rates are typically lower than Option I rates since the interest income earned by ICC on these transactions is exempt from federal income taxes.
Option R - Secured term loan to Commercial customers for used equipment.
Option RG - Secured term loan to State & Local customers for used equipment. These rates are typically lower than Option R rates since the interest income earned by ICC on these transactions is exempt from federal income taxes.
Option S - Financing of IBM software or services for Commercial customers.
Option S' - Financing of IBM software or services for State & Local customers. These rates are typically lower than Option S rates since the interest income earned by ICC on these transactions is exempt from federal taxes.
Option T - Loan to finance non-IBM products and services, or termination charges for Commercial customers.
Option T' - Loan to finance non-IBM products and services, or termination charges for State & Local customers. These rates are typically lower than Option T rates since the interest income earned by ICC on these transactions is exempt from federal income taxes.
