What is the function of ATEL Equipment Services?
ATEL Equipment Services ("AES") provides a vast amount of technical expertise and equipment disposition services to the various entities comprising ATEL Capital Group. Its personnel handles all requests for Residual Value determination for the pricing of new lease transactions, as well as all equipment re-marketing/disposition throughout the term of the lease and upon lease expiration. In addition, ATEL Equipment Services provides its expertise and equipment disposition services on a consulting basis to third party entities outside of the ATEL Capital Group umbrella.
What happens to the Equipment when a lease expires?
In most cases, the original user of the Equipment will continue usage of the asset(s). They will either have negotiated a purchase or renewal (lease extension) of the Equipment necessary for their operations.
In other instances, ATEL Equipment Services will locate a new user for the Equipment once notified by the Lessee of its intention to return the assets upon termination of the initial or any renewal terms.
Does ATEL Equipment maintain an inventory of available capital equipment?
Yes. When Equipment is surrendered to ATEL at lease end it is then made available for sale. Typically, we will arrange for any maintenance or parts required to ensure that the items will perform the services for which they were originally intended.
Will ATEL provide financing for Equipment which has previously been in-service?
Yes. ATEL Equipment Services will customize a financing program for previously in-service equipment based on the new user's specific needs and requirements.
How is the price of this Equipment determined?
ATEL Equipment Services has the responsibility for handling a tremendous volume of used Equipment. As such, this Equipment is priced effectively for a timely sale. Our staff of Asset Management professionals draws upon a vast body of experience and information with respect to all types of capital equipment. Extensive market research is conducted prior to the pricing and offering of these assets for sale.
What can a buyer of the previously in-service Equipment expect concerning the appearance and functionality/condition of these assets?
ATEL Equipment Services will ensure that the condition of this Equipment meets the buyer's requirements and expectations. Most, if not all, of these assets were employed by the largest corporations in the U.S. with the financial resources available to adequately maintain the condition of the units. ATEL's lease documentation addressing Equipment Maintenance and Return Conditions requires the original user to return equipment to us in a condition described "as new, reasonable wear and tear excepted, able to perform all functions originally intended." The actual sale price of the used equipment will reflect the condition required by the new user.