Why lease – why not just borrow the money?
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.
Who can lease?
Any company, association, non-profit organization, or individual that is using the equipment for
a business or commercial use.
What are the up-front costs for a lease?
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 reimbursing us for processing the leased
documents and filing UCC-1 financing statements required in your state. We do not charge
an application fee.
Can I cancel the lease?
No. However, you may arrange for a prepayment of the lease or an
upgrade to a more sophisticated piece of equipment.
Can I add equipment to the lease?
Yes, you can add equipment to the lease at any time. Usually there is a minimum amount of
equipment that can be added.
What about sales tax?
Sales tax is added to your monthly lease payment each month and charged separately.
What is the typical process for leasing equipment?
You will fill out a simple, one page credit application. In certain instances, other financial
information may be required such as tax returns or financial statements. The supplied credit
information is reviewed and upon approval, the lease documents are prepared and sent to you
for signing. A purchase order is then issued to your equipment vendor. Upon delivery of the
equipment and acceptance by you, the equipment is paid for and the lease commences.
What about insurance?
For your protection, and ours, it is required that the equipment be insured. You simply instruct
your own insurance agent to forward evidence of insurance to us at no cost to you.