Why lease - why not just borrow the money? |
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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.
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Who can lease?
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Any company, association, non-profit organization, or individual that is using the equipment for a business or commercial use.
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What are the credit qualifications for a lease?
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The business must maintain a satisfactory payment history with its suppliers. We work with all levels of credit worthiness. The rates adjust according to your credit rating, in addition to many other factors. We review the personal credit of the business owner(s) and take into consideration the credit history, in combination with other factors in our approval process.
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What are our current interest rates?
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When you lease equipment you are actually making a rental payment, much as you would if you were leasing an office space or renting an apartment. Therefore, we don't quote interest rates. The monthly payment we quote is contingent upon the financing terms, equipment cost, chosen equipment, and personal credit of the lessee.
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What is the average term of a lease?
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Terms range from 12 months to 60 months. We can extend to 84 months on certain equipment.
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When do my leasing payments start?
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In most cases we collect the 1st and last payment at lease signing, your next payment will be approximately 30 days after the equipment has been delivered.
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Can I defer payments or skip a payment?
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Yes, we offer deferred and skip payments for your convenience. To qualify for this, we must establish this during the beginning of your lease with us.
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What are the up-front costs for a lease?
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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 processing the lease documents and filing UCC-1 financing statements required in your state.
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Can I cancel the lease?
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Yes, as long as the new lessee's credit qualifies and their application is approved.
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Is my lease transferable?
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The lease is non-cancelable. However, you may arrange for prepayment of the lease or upgrade to a more sophisticated piece of equipment.
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Can I add equipment to the lease?
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Yes, you can add equipment to the lease at any time. In most cases, any equipment added to your lease must cost at least $5000 or more.
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Does all equipment come from the same vendor?
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No, you may get equipment from multiple vendors.
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Who warranties and owns licensing for the equipment?
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The warranties and/or licensing offered by the manufacturer are passed on to you.
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Can I lease pre-owned equipment or refinance equipment that is currently leased with another leasing company?
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Yes, we can write you a check for equipment that you already own if it was purchased within the past 90 days of your approved application. You may also lease equipment already on lease with another company to achieve a longer lease term.
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What about sales tax?
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Sales tax is added to your monthly lease payment each month and charged separately.
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What is the typical process for commercial equipment leasing?
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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.
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What about insurance?
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For your protection, it is required that the 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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How long does the entire leasing process take?
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The application and credit approval process takes between 24 and 48 hours for applications up to $200,000.
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How do I apply for my lease with Nationwide Equipment Leasing, LLC?
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Simply complete our online lease application or download the PDF to print and fax or email it to us. Click here to access the online application.
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