Equipment Leasing Faqs

Leasing is a sensible way to acquire new equipment and compares positively along with other forms of financing, costing you comparable. That, not surprisingly, isn’t coincidence; the marketplace requires it and leasing rates are established keeping that in mind.
Leasing firms have a look at what typical mortgage rates are and then factor in your interest deduction and depreciation to reach at what a loan really costs you; your net after tax cost. They then set their rates to get reasonably competitive and work backwards, factoring inside the greater deductions proposed by the lease, to reach at lease payments that will give you the same estimated net cost. It’s most likely comparable to you analyze and hang up your own prices, you must be competitive. With 80% coming from all businesses leasing, it can’t cost much more; and knowning that size market they just don’t need to charge a lot less.
Anyone who says that leasing always is more expensive is simply as wrong anyone who says it at all times less expensive. The simple truth is it costs you comparable to lease equipment as it can to buy it. Firms lease for income and other reasons as cited above.
What kind costs more?
To accurately answer that question you have to review your net-after-tax-cost. The “list price” may well not tell the whole story. As a $610 television within the electronics store generally seems 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 exploring the total transaction; websites cost; might “cost” the choice you want to make. Comparing leasing and purchasing is quite similar.
How is leasing totally different from borrowing from my bank?
By borrowing from a bank or other options for credit, you are instantly reducing your line of credit with that source and therefore removing a chance to draw from those sources in the foreseeable future for other business needs. Also, a bank normally takes a 20% – 25% down payment and may even even require further collateral to secure the financing. Leasing provides 100% financing.
Is really a down payment required?
No down payment is required. Most leases can be set up with precisely the initial and last payment ahead of time.
Are there any supplemental charges involved with a lease?
Just the one time credit and documentation processing fee due with the beginning of the lease.
Why don’t you consider taxes and insurance coverage?
Most states charge a sales/use tax around the monthly lease payment amount. This sum will probably be added to your monthly invoice with the lease payment. Also, the county charges a private property tax about the equipment. We will pay this amount for you and bill you for this on an annual or monthly basis.
Can I cancel the lease and give back the equipment?
In a word, no. The lease is a non-cancelable agreement for the full time period of the lease. Nevertheless, in the term of the lease if you ever have got to upgrade or enhance the equipment, we can structure a brand new lease for you by paying off the existing lease and structuring a brand new lease for the overall from the payoff and the price of any new equipment.
What are the results to the equipment right at the end of the lease?
Based on the lease structure you decide, you will have the option to either return the equipment, continue the lease on the same monthly rate, or find the equipment for either the fair market value or the amount of the investment option you negotiated on the inception of the lease. (i.e. $1.00 or 10%)
Who’s going to be responsible for the maintenance of the equipment?
As the lessee you are accountable to maintain the equipment in good working order therefore you get the benefit of all “buyer” extended warranties.
Isn’t leasing difficult?
By no means. In fact, where a bank or traditional lender would need financial statements and mounds of forms, most leases might be approved up to $75,000 with just a credit application.
How can i apply for a lease?
It’s easily! Simply apply on line or print our standard one page lease application, complete it, sign it and fax returning to us. Most credit decisions are designed within 48 hours of receipt of the credit information.