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LEASING FAQ'S
Who can lease?
Any company, organization or association. At present we do not lease equipment to an individual for personal use.
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How much does leasing cost?
Leasing is not expensive. Your monthly payment is determined by the options you decide upon. If you are asking how leasing effects your bottom line when compared to other options, consider a lease vs. loan vs. buy comparison.
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How is the monthly payment calculated?
Monthly payment is determined by a Lease Rate Factor: a periodic rental payment to a lessor for the use of assets. Lease rate factor X equipment cost = your monthly payment.
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When does the lease start?
When you have verbally acknowledged that the equipment you ordered has been received and is in good working order.
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What are my options at end of lease?
Lessee has an option of continuing to lease, purchasing the equipment, or returning it to the Leasing Company. Should you choose to purchase the equipment, the purchase price is determined by the Fair Market Value (FMV) of the used equipment. Another option is the $1.00 Buy Out; at end of lease, you pay just $1.00 to purchase the equipment. Which option is best for you?
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What if the equipment I receive has problems?
You will be contacted when your shipment arrives to ensure you receive exactly what you ordered. After your initial receipt of the equipment, your vendor will troubleshoot problems or replace equipment as defined in your warranty. Lessee receives benefits of all "buyer" warranties and is responsible for maintenance.
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Who owns leased equipment?
The Leasing Company, as lessor, is the owner of leased equipment until you choose to purchase the equipment at end of lease.
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May I end my lease early?
If you choose to end the lease early, you may. It is a rare situation that would make terminating a lease during its term an advisable option but there is no penalty for early payment. We attempt to maximize your options with equipment upgrade programs. We pride ourselves on our ability to offer solutions that meet your needs.
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If my company is new, can I still lease?
Yes, pending credit approval. A security deposit may be required.
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What factors are used to determine credit worthiness?
The length of time in business, references from bank and trades, D&B, and credit bureau ratings.
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Can equipment be purchased at the end of the lease?
Yes. Lessee can choose to continue to lease, purchase the equipment, or return equipment to the Leasing Company.
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What about sales/use tax?
Your company is responsible for any and all sales/use taxes.
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Who services/maintains equipment?
Lessee. Lessee receives the benefit of "buyer" warranties.
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What about insurance?
To protect both the Leasing Company and Lessee, insurance is required on all leased equipment. Insurance protection can be included with your lease for a nominal fee.
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How does Lessee account for the lease?
The options you choose upfront may have tax and accounting implications. Talk to your accountant to determine the best option(s) for you.
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What effect does leasing have on Lessee's bank line of credit?
With a lease no money is borrowed. Your bank line is unaffected.
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