FREQUENTLY ASKED QUESTIONS (FAQs)
What ARE THE RequireMENTS To Make An Online Application?
Applying online is free, fast and simple. Anyone can make an online application as long as they are 18 years of age or older, and have citizenship or permanent residency in Canada or the United States. If you are applying in your business' name you will need your company information too along with your most recent two years of financial statements. These can be easily uploaded during your online application.
WHAT IS A LEASE?
There are two main types of leases: Finance Leases and Operating Leases (sometimes called True Leases).
With leases the ownership of the asset is always listed in the name of the lender until the end of the agreed upon lease term.
Finance leases are structured so that at the end of the term of the lease you own the equipment, usually for a nominal buy-out amount of $1. These are the most popular type of leases. You get all the tax and cash flow benefits of a lease, but you also get to own the equipment or asset at the end of the term. The monthly payment for the lease is expensed each month just like any other company expenditure, without the need to worry about depreciation. You also get the benefit of only having to paying the tax on the purchase slowly over the term of the lease, instead of up-front and all at once like you have to do with loan financing.
Operating leases (sometimes called a "true lease") is where the customer gets to return the asset to the lender at the end of the term of the lease. This type of lease is used mainly when a company wants "off balance sheet" financing for a purchase. This type of lease is not as common as a finance lease.
How Is A Loan Different FROM A LEASE?
With a loan the taxes are due upfront at the time of purchase, and not spread out over the term of the contract like they are in a lease. When you get a loan the ownership for the asset gets to be in your or your company's name instead of the name of the lender.
With a loan you get none of the tax or accounting benefits that come with lease financing. In a loan you must calculate depreciation yearly instead of just being able to expense the whole payment like you do with a lease.
What kind of Down Payment is needed?
The range for down payments is typically 0%-25% of the total purchase price, depending on the credit profile of the applicant and the type of asset being bought. The most common down payment for a new asset is 10%, and 15% for a used asset, but many lenders will consider a 5% or even as low as a 0% down payment for a strong credit profile.
What Does It Cost To Apply?
Applying is completely free. There are no hidden costs and we will get you a better rate than you would have gotten on your own, with less hassle and much less work on your part. All you need to do is use our secure, online application to get the process started.
How Long Does It Take To Get Approved?
Some applications take less than an hour to approve, but we like to ask our clients to give us 1 to 2 business days to find you the best approval possible for your individual credit profile along with the asset you would like to purchase. Sometimes taking an extra day working on finding you the perfect lender to approve your specific application ends up saving you thousands and thousands of dollars over the term of the financing.
What Kind OF Credit SCORE IS NEEDED TO APPLY?
We work with every type of credit profile from A to E. Regardless if you have perfect credit and are simply searching for a more competitive financing offer, or you have had some credit challenges in the past and need help securing the best possible approval we can help.
What is the min and max amounts you can Finance?
We specialize in the 5K to 5M dollar range per transaction. Amounts over 5M are available to strong applicants.
How Soon Do Payments Start?
Typically lenders expect their first payment to be debited from your bank account 30 days after the asset is funded. However some lenders allow you up to 90 days before a first payment is required.
What Happens If We Want TO Pay It OFF Early?
Most leases for equipment finance are considered "balance of payment" contracts, meaning you are required to pay the monthly amount until the end of the term of the contract. Some lenders allow you early buy-out options after a certain amount of months have passed, or other early repayment options, but that is on an individual basis and varies from lender to lender. There are some loans from various lenders that allow early repayment options, but usually there is a penalty or fee associated with ending the contract early.