Lease in Escrow

Lease in Escrow is commonly referred to as a "Progressively Drawn" lease. This facility is generally for larger transactions (over $100,000) where the equipment is being constructed and progress payments are required by the manufacturer at various stages during construction. Repayments during this time are interest only on the outstanding balance, charged monthly in arrears. Once construction is complete, the facility is converted to either a lease or equipment loan, depending on the borrower's requirements.