Frequently Asked Questions (FAQs)
We can structure a finance / lease for virtually any type of commercial equipment, including software and installation costs.
Financing / Leasing is the right choice!
80% of U.S. businesses, from Fortune 500’s to local family businesses, either finance or lease some portion of their equipment. By financing your equipment: there is less impact on your cash flow, lower fixed monthly payments, preservation of existing business credit lines, a method for eliminating equipment obsolescence and potential, significant, tax advantages.
What is equipment leasing & what can it do for my business?
Leasing eases the strain on working capital by providing 100% financing. This means the business has more money available to invest in Profit Generating activities. It converts a large purchase into a low, affordable, tax deductible monthly payments.
What is a lease?
A lease is an agreement by you (the lessee) to pay a specific monthly payment for a specified amount of time to the leasing company (lessor) for equipment you have chosen from an equipment vendor of YOUR choice.
How can my business benefit from leasing?
All businesses can benefit from utilizing equipment leasing. Whether the business is a start-up or established, financially strong or challenged credit. Leasing will provide your business with the necessary equipment when you need it, without a large down payment and typically more lenient credit requirements. Banks generally have stringent and inflexible credit requirements.
What types of equipment can I lease?
Lease Genie can finance virtually all types of equipment, as long as it is used for business purposes. We have arranged leases for a variety of equipment including: office equipment, large printing presses, yellow iron, titled vehicles, video production and many other types. We currently do not have any equipment restrictions. Click here for our Equipment We Finance List.
What types of lease terms are available?
Lease terms are 24, 36, 48, 60, 72, and 84 months. The 84 month term is used for large ticket items only and is provided on a case by case basis. Purchase options include Fair Market Value (FMV), $1 Buyout, and 10% Put.
What are the business requirements to lease equipment?
We can provide leases for all kinds of businesses. We have lease programs for established businesses (over 2 years time-in-business), start-up businesses (under 2 years time-in-business), and businesses with past credit issues.
How is a lease different than a loan?
A lease is an agreement to make payments for a specified amount of time for the right to use the equipment, OWNED by the lease company. A loan is a financing vehicle to pay for equipment owned by the user of the equipment. Click here to view a chart detailing the difference between an Equipment Lease vs. Bank Note.
After I submit my application, how long will it take to be approved?
We can get an approval in 2-4 hours on leases up to $100,000, and 24-48 hours on larger more complicated leases.
What kind of investment is required to obtain my equipment lease?
Generally we require first and last payment. If there are credit challenges we may require a security deposit or some form of collateral.
What are your minimum and maximum lease amounts?
Our minimum lease amount is $5,000 our maximum lease amount ii in excess of $50 Million.
Do you finance soft cost such as installation & service?
Yes, we provide 100% financing including soft cost.
Do you finance software? Or Websites?
Yes, we do.
My business is a new/start up business with less than 2 years in business. Can you arrange a lease for my business?
Yes, we specialize in working with start-up businesses! Most banks have severe limitations on extending credit to a Startup. Ironically it’s the time businesses are most in need. A new business needs the ability to build on opportunities and we can provide the capital to enable them to grow with our Startup Equipment Lease Program.
I have located the equipment I want to lease for my business, but I want to purchase the equipment from several different vendors. Can all the equipment be put on the same lease?
Yes, We will arrange to put all the equipment on the same lease.
What is a Capital Lease?
This plan is perfect for businesses which intend to keep the equipment at the end of the lease. The Capital Lease option allows your business to purchase the equipment for $1.00 at the end of the lease term. At the end of lease term, you can choose to sell the equipment or trade it in for updated technology.
What is an Operating Lease (FMV)?
This leasing plan gives you several options at the end of the lease. You can choose to purchase the equipment or continue leasing the equipment based on its current Fair Market Value, or you can choose to return the equipment.
What is a Sale – Leaseback Lease?
A sale and leaseback is an arrangement where a business sells one of its assets to a leasing company and then immediately leases it back for a guaranteed minimum term and payment. By doing so, the business obtains cash from the sale of the asset, which may use for cash flow or other intended purposes.
Sale – Leaseback is typically used for large assets, such as production machinery, or other large assets with significant value.
What is a Master Lease?
A Master Lease should be utilized when either several pieces of equipment are being purchased at different times or to lock in a low fixed rate and when the appropriate equipment is located, the funds are immediately available. Being Pre-Approved can aid in the price negotiations between your company and the prospective vendor.
What is a Step Up/Step Down Payments?
If you have a seasonal business, and only operate 7 months a year, lease payments can be set up for the same time period. This plan offers a structured payment plan that matches your company’s cash flow needs. In order to minimize finance charges, payments can start high and decrease, or start low and increase throughout the later years of the lease.
What is an Equipment Finance Agreement (EFA)?
An equipment finance agreement can be viewed as a bridge between a lease and a loan. If you put an equipment finance agreement and lease agreement side by side, you will notice the terms and conditions are virtually identical. From the perspective of an end user’s obligations contained in a lease or finance agreement, they are the same. An EFA is similar to a loan and EFA’s use terms like “lender” and “borrower” instead of “lessor” and “lessee.”
The major reason for equipment finance agreements is the avoidance of liability upon the lessor.
What is the Advantage of an EFA?
The real advantage of equipment finance agreements is when you compare them to bank loans. With a bank loan, the bank often applies a lien on all your assets, including accounts receivables, as collateral for the loan. In other words they secure everything you own and will acquire in the future. On the other hand an EFA or lease is not secured by all your present and future assets but is specific to the equipment being financed or leased.