| Q.
Why should we lease or finance equipment instead of making
a purchase? |
| A. One
universal advantage of equipment leasing is that a customer
only pays for the use of equipment over a term tied to the
equipments use and productivity. Another important advantage
is that state-of-the-art equipment is available to the customer
without taking all of the risks of obsolescence that go with
ownership. |
| Q.
How do we compare financing proposals? |
| A. We
offer competitive rates in all categories. Company managers
should determine exactly how the proposals are presented.
Are the advance payments, purchase options, and sale prices
identical? Any variations in these items will cause differences
in your monthly payment. |
| Q.
How easy is it for us to add equipment at a later date? |
| A. Financing
of additional equipment may be easily done upon completion
of a one-page schedule to a Master Lease. |
| Q.
What if we want to terminate a lease early? |
| A. When
a lease is signed for a specific term, we will expect the
customer to honor this agreement. In some situations, however,
you must terminate a lease before the term has expired. In
that case, a lease can be terminated after the customer pays
us a termination charge encompassing the value of all unpaid
lease payments, taxes, and purchase option price (if retaining
equipment). |
| Q.
Can we move the equipment from one location to another?
|
| A. Yes,
in most circumstances. We require a written request for relocation
and will forward a written acknowledgment. It is important
for us to know the location of the equipment since it either
owns or has a security interest in it. In addition, there
are state and local tax consequences related to the location
of the equipment. |
| Q.
What kind of tax benefit do I receive as a result of leasing?
|
| A. In
many cases the monthly payment to us may be treated as a recurring
business expense for tax purposes. Therefore, these payments
are normally tax deductible. Since we own the equipment, it
is taking the depreciation of the equipment. (All prospective
lessees should consult their own tax and accounting advisors
for definitive opinions in their own separate circumstances.)
|
| Q.
What are our current interest rates? |
| A. Current
interest rates are reflected in our pricing. They vary based
upon the amount of each individual transaction. We update
these payment amounts to correspond with current interest
rates and competitive data available in the marketplace. Many
customers want to know the interest rate related to the payment
amount they are given. Since an interest rate calculation
is based on the equipment cost and various other factors,
they must be addressed on an individual basis. |
| Q.
How is Fair Market Value (FMV) determined? |
| A. Fair
Market Value (FMV) is determined at the end of the leasing
term, or other relevant time, based on market conditions at
the time. It is that price at which a willing buyer and seller
are able to complete a sale. We invite customers to call us
if they have any questions regarding end-of-lease options. |
The
advantages of leasing
