Frequently Asked Questions

A lease is an agreement to pay for the use of equipment for a specific time period for a specified amount. There are a number of advantages to leasing which makes it an attractive option for many businesses.

It is the use of equipment that generates profits, not ownership! You also can with a Lease, option to buy at the end of lease.

Leasing is a practical way to use new equipment and compares favorably with other forms of financing, costing you about the same. That, of course, is no coincidence; the marketplace demands it and leasing rates are set accordingly.

Leasing companies look at what typical bank loan rates are and then factor in your interest deduction and depreciation to arrive at what a loan really costs you; your net after tax cost. They then set their rates to be competitive and work backwards, factoring in the greater deductions offered by the lease, to arrive at lease payments that will give you the same approximate net cost. It’s probably much like you analyze and set your own pricing, you have to be competitive. With 80% of all businesses leasing, it can’t cost much more; and with that size market they don’t need to charge much less.

Anyone who says that leasing always costs more is just as wrong as anyone who says it always costs less. The truth is it costs you about the same to lease equipment as it might to buy it. Businesses lease for cash flow and other reasons as cited above.

To accurately answer that question you have to look at your net-after-tax-cost. The “list price” may not tell the whole story. Just like a as a $610 television in an electronics store appears to cost more than the $600 model sitting beside it; if there’s a $10 rebate on it, then its net cost to you is the same. Not looking at the total transaction; the net cost; might “cost” you the choice you really want to make. Comparing leasing and purchasing is very similar.

By borrowing from your bank or other sources of credit, you are immediately reducing your line of credit with that source and thereby eliminating the ability to draw from those sources in the future for other business needs. Also, a bank usually requires a 20% – 25% down payment and may even require additional collateral to secure the loan. Leasing provides 100% financing.

A lease is an agreement to pay for the use of equipment for a specific time period for a specified amount. There are a number of advantages to leasing which makes it an attractive option for many businesses.

No other charges other than only the one time credit and documentation processing fee due at the inception of the lease.

Most states charge a sales/use tax on the monthly lease payment amount. This amount will be added to your monthly invoice of the lease payment. In addition, the county charges a personal property tax on the equipment. We will pay this amount for you and bill you for it on an annual or monthly basis.

In a word, no. The lease is a non-cancelable agreement for the full term of the lease. However, during the term of the lease should you need to upgrade or add to the equipment, we can structure a new lease for you by paying off the existing lease and structuring a new lease for the total of the payoff and the cost of any new equipment.

Depending on the lease structure you choose, you will have the option to either return the equipment or continue the lease at the same monthly rate, or purchase the equipment for either the fair market value or the amount of the purchase option you negotiated at the inception of the lease. (i.e. $1.00 or 10%)

As the lessee you are responsible to maintain the equipment in good working order and you receive the benefit of all “buyer” warranties.

Not at all. In fact, where a bank or conventional lender would require financial statements and mounds of paperwork, most leases can be approved up to $75,000 with just a credit application.

It’s fast and easy! Simply apply on line and submit or print our standard one page lease application, complete it, sign it and fax back to us. Most credit decisions are made within 48 hours of receipt of the credit information.