Equipment Leases FAQs

What is an Equipment Lease?
Who leases?
What are the advantages of leasing?
How long are the leases you provide?
How much equipment can I lease?
Do you lease equipment to startups?
Do you provide leases on used equipment or equipment I already own?
What is the process?
What type of equipment can I lease?

Q: What is an Equipment Lease?
A: Leasing is a contractual arrangement whereby one party (the “Lessor”) owns certain equipment and another party (the “Lessee”) uses the equipment and makes lease payments to the Lessor.  A third party, the Equipment Vendor, is the party who sells or supplies the equipment to the Lessor.    

In all lease arrangements supplied by us, the leasing contracts are on a “lease to own basis,” with an agreed upon purchase option at the end of the lease.

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Q: Who leases?
A: Lessees range from sole proprietors and small businesses to Fortune 500 Corporations.

In any given year, more than 200 billion dollars worth of new equipment will be acquired through leasing. In fact, approximately 80% of all businesses use leasing to acquire some or all of the machinery and equipment they use.

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Q: What are the advantages of leasing?

• Leasing does not tie up your working capital
• You can gain possible tax advantages
• Conserves your bank credit lines
• Provides 100% financing
• Opens a new credit line for future equipment acquisitions
• May enable you to expense every penny of your lease payments
• You pay a fixed rental payment
• You can project costs more accurately 

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Q: How long are the leases you provide?
A: We provide 24, 36, 48 & 60 month leases.  In most cases you will get more than one option on the length of your lease term as well as payment amount.  

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Q: How much equipment can I lease?
A: You can lease a single piece or multiple pieces of equipment costing up to 1 million dollars.  Companies that continually acquire equipment may use a master lease to avoid executing a new contract every acquisition.

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Q: Do you lease equipment to startups?
A: Yes, we have programs to lease equipment to startups.

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Q: Do you provide leases on used equipment or equipment I already own?
A: Any many cases, we can provide a lease on used equipment.  In many cases, we can also provide leases on equipment you already own.

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Q: What is the process?
A: In most cases, the Lessee (you) selects and orders the equipment before contacting the Lessor. Unless provided for in the provisions of the lease, Lessors don’t normally provide equipment warranties. Equipment warranties are between the Lessee and the manufacturer.

You as the Lessee will undergo a credit check and other underwriting procedures to ensure you meet the specific credit requirements of the Lessor.  Once you are approved by the Lessor, you will sign documents memorializing the lease.  

By signing the lease, the Lessee (you) assign your purchase rights to the Lessor, who already owns or who then buys the equipment as specified by the Lessee (you).

When the equipment is delivered, the Lessee (you) formally accept it and makes sure it meets all of your specifications. The Lessor then pays for the equipment, and the lease takes effect.

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Q: What type of equipment can I lease?
A: You can lease almost any kind of equipment you need, we’ve listed some types below. You can choose the equipment you want, make the arrangements as to the price and specifications, and allow to supply the financing for you.

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