Equipment Leasing

What is a Lease?

A lease is a contractual agreement between two parties whereby the Lessor allows the Lessee to use the equipment for a specific period of time in exchange for a series of payments.

There are three parties involved in a lease transaction:

  • ƒLessee (customer)
  • Lessor (owner of equipment who will finance the lease)
  • ƒEquipment Vendor  (supplies the equipment)

Roles of the Lessee/Lessor

Lessee:

  • Customer chooses equipment vendor
  • Customer agrees to all contractual obligations of the lease

ƒLessor:

  • Owner of the equipment who purchases the equipment from the vendor
  • Remits payment to the vendor for the cost of the equipment
  • Bills and receives payment from Lessee

The Lease Process

Step One: Vendor proposes a lease solution to acquire necessary equipment and customer accepts

Step Two: Vendor has customer (lessee) complete a lease application and submits to (lessor)

Step Three: Lessor performs credit review on Lessee

Step Four: If approved, customer will complete all necessary lease documents

Step Five: Lessor receives all necessary lease documents and approves delivery of equipment

Step Six: Equipment is delivered and accepted by Lessee

Step Seven: Lessor pays for the equipment and commences Lease

Additional benefits of leasing

  • Conserve your working capital
  • Simple application /approval process
  • Finance installation and training costs in one lease
  • Potential tax savings under IRS Section 179
  • $1 purchase option allows you to own the equipment at lease end
  • Quick turnaround times on Credit Applications-Under $150,000 approvals in 2-4 hours with application only, over $150,000 approvals in 24 to 48 hours with submission of tax returns or financials
  • Fixed monthly payments throughout term
  • Trade up to new equipment
  • Competitive lease rates