FAQ

Here are a few questions and answers that might help you out in making your decision.

  • Q – What is equipment leasing?
  • A – Equipment leasing is where a lessor provides financing for new or used equipment to another business (lessee). This avoids the lessee’s need to invest capital in equipment. The ownership rests in the hands of the lessor while the lessee has the actual use of it.
  • Q – Can I add more equipment to my lease?
  • A – Yes, you can add equipment to you lease at any time as long at the new piece of equipment cost more than $5000.00 dollars and up.
  • Q – Why is equipment leasing better than bank a loan?
  • A – An approval for a bank loan can take weeks and involve long applications. With equipment leasing, an approval can take place the same day, the application is only one page and doesn’t require businesses to provide financials.
  • Q – What types of businesses can lease equipment?
  • A – Any type of business or organization can lease equipment including proprietorships, partnerships, corporations, government agencies, and non-profit organizations.  We can do anything that is business essential.
  • Q – What are the up-front cost for a lease?
  • A – Usually, just the first and last monthly lease payment. Unlike a down payment for a purchase, these payments are smaller and are applied to your total lease payments.   In addition, a nominal documentation and filing fee is required for processing the lease documents and filing UCC-1 financing statements required in your state.
  • Q – Why is equipment leasing better than paying cash?
  • A – Equipment leasing allows you to make smaller monthly payments and stay liquid instead of one much higher payment if the equipment is paid in cash.  It also allows you several tax deductions for your business.
  • Q – How are lease rates determined?
  • A – Fixed lease rates depend on the cost of the equipment, term, and your credit history.
  • Q – How long does the equipment leasing process usually take?
  • A – Typically the whole process depends on the amount requested. With finance costs up to $250,000, the one page credit application can be approved within the hour.  Final funding usually occurs within a couple days after delivery.
  • Q – What happens at the end of my lease term?
  • A – There are several options at the end of your lease. You can choose to buy the equipment for a mutually agreeable price, continue to lease the equipment or return the equipment.
  • Q – What types of leases are available?
  • A – The most common types of leases are fair market value leases. Other types of leases include dollar buyouts, refinancing, working capital loans, etc. Fair market value allows you and your leasing company to negotiate what the value of the equipment is at the end of the term. Dollar buyouts mean you can own the equipment for $1.00 at the end of the lease. The fixed put is when the end of lease payment is determined at either a fixed percentage of the equipment cost or a specified dollar amount.

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