Equipment Leasing and Financing FAQs
Q Why lease - why not just borrow the money?
A Equipment leasing offers
a source of credit with the added benefit of being able to deduct the payments
for income tax purposes (in most instances). 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.
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 Can I cancel the lease?
A The commercial equipment lease is non-cancelable. However,
you may arrange for prepayment of the lease or upgrade to
a more sophisticated piece of equipment.
Q Can I add equipment to the lease?
A Yes, you can add equipment to the lease at any time.
Q What about sales tax?
A Sales tax is added to your monthly lease payment each month.
Q What is the typical process for leasing equipment?
A You 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
Q What about insurance?
A For your protection, it is required that the leased equipment
be insured. You simply instruct your own insurance agent to
send a certificate of insurance to us at no additional cost to you.
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