Equipment Leasing Q&A
Learn more about the structure and end of term options for our most popular equipment leasing programs.
How long does equipment financing usually take?
Requests for up to $150,000 will be approved within two hours after receiving your credit application. Documents will be e-mailed to the customer, and a Purchase Order is immediately faxed to the vendor once signed documents have been received.
Can used equipment or vehicles be financed?
Yes. We finance all types of new and used vehicles and equipment.
What happens at the end of the term?
There are a variety of end of term options available when you first sign your contract. Your Account Manager will discuss these with you and help you choose the best option for your business. These include Fair Market Value, $1.00 Buyout and other Fixed Purchase Options.
Fair Market Value (FMV)
Our Fair Market Value product is designed for business owners who expect the value of their equipment to decrease quickly, or who want to upgrade their equipment at the end of the lease. At the end of a FMV lease, the lessee has three options: extend the term of the lease, return the equipment, or buy it at its fair market value. With this lease, you generally have lower monthly payments and you can write off 100% of your payments as an operating expense. Please consult your accountant about the tax treatment for your company.
This option is for those who are fairly certain that their equipment will retain its value. Therefore, they plan to purchase the equipment at the end of the lease. When the lease term expires, you can simply purchase the equipment for a $1 (or $101 depending on your state’s tax laws).
10% Purchase Option
For those who like the flexibility of the option to return the equipment or purchase it at the end of lease, but want to cap their equipment buyout at a certain percent of the equipment cost, this is the option for you.
What is the interest rate on an equipment lease?
Although a lease is not a principal and interest loan, rates are based on credit history, time in business, equipment cost, lease term and structure.
Can the lease be paid off early?
Will my commercial lease payments be tax deductible?
The IRS generally allows businesses to write off 100% of their lease payment if the lease has been structured properly. We always recommend consulting with your tax advisor.
Are lease payments fixed for the entire term?
Are there minimum Time in Business requirements?
We have a new business program for companies who have been in business for less than two years. However, most of our leasing programs require a minimum of two years time in business, or in a related industry.
Do I need to make a down payment?
Leasing provides 100% financing in most situations. Custom-tailored payment plans are available, so that you can get the structure and terms that best fit your business needs. We will usually ask for the first and last payment in advance when lease documents are signed.
What is the minimum amount?
We have finance products from $500 to $5 million dollars, as well as options for Working Capital, Lines of Credit, and Consumer Finance options. Our goal is to provide financing opportunities for as many business owners as possible.