| Leasing
FAQs
What
is leasing?
Why lease, instead
of borrowing the money?
What equipment can
I lease?
Who can lease?
Does the equipment
have to be new?
Who is responsible
for insuring the leased equipment?
Isn’t it better
to own equipment?
What is the fair
market value purchase option going to be?
Who pays the taxes?
Can I put additional
equipment on my existing lease?
Is the lease cancelable?
Q: What is
leasing?
A: An equipment lease is a contract between
an equipment user, the lessee, and an equipment provider,
the lessor, for the use of a specific piece, or pieces,
of equipment for a specified period of time and for
a specified usage fee, the lease payment.
Q: Why lease, instead of borrowing
the money?
A: If you borrow money to buy and own equipment,
you are using up available credit, which, if used for
other purposes, has the ability to earn a return much
higher than the cost of the lease payments. Leasing
offers a new source of credit with the added benefit
of being able to "expense" the payments in
most instances.
Q:
What equipment can I lease?
A: Just about any commercial equipment for
use in business, government, or non-profit institutions.
This may include:
- Industrial, Construction, and Manufacturing:
Fork lifts, cranes, dozers, loaders, machine
tools
- Transportation: Tractors
and trailers, aircraft, trucks, automobiles
- Office Equipment: Furniture,
copiers, fax machines, fixtures
- Computers: Mainframe, industrial
and imaging systems
- Communications: Telecommunications,
broadcast, and switching equipment
- Medical: CT scanners, MRI
systems, X-ray equipment and fixtures
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Q: Who can
lease?
A: Any company, association, non-profit organization,
or individual that is using the equipment for a business
or commercial use.
Q: Does the
equipment have to be new?
A: No. We provide lease financing for used
and/or new equipment.
Q: Who is responsible
for insuring the leased equipment?
A: For your protection, it is required that the equipment
be insured. You simply instruct your own insurance agent
to send a certificate of insurance to us at no additional
cost to you.
Q: Isn’t it better to own equipment?
A: Use of equipment, not ownership, produces profit.
It is usually more economical to lease equipment and
use your cash for other needs. Depending on the type
of lease you choose, you can either purchase the equipment,
or return it and lease more updated equipment, at the
end of your lease term.
Q: What is
the fair market value purchase option going to be?
A: The fair market value of the equipment will
be determined by the market. If you and your leasing
company cannot agree on the market price, an independent
appraisal will be used to determine the amount. A fair
market value lease option offers you the lowest monthly
payment, which is tax-deductible as an operating expense,
and a flexible purchase option at the end of the lease.
"Fair market value" is just that, the price
for which the equipment could be rented or sold in a
transaction between unrelated parties.
Q: Who
pays the taxes?
A: The lessee is responsible for all taxes,
but the actual payment to the taxing authority is made
by the lessor, who is reimbursed by the lessee (you).
Q: Can I
put additional equipment on my existing lease?
A: Yes. Once you’ve signed one contract, additional
equipment can be added easily. Also, please be sure
and ask about "no-doc" add-on programs.
Q: Is the
lease cancelable?
A: No, a lease is a non-cancelable contract.
To Obtain a Quick
Lease Application
For more information on Leasing Options,
click here to
send us your questions.
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