Frequently Asked Questions

Any new or used equipment that is a vital part of your business. Your company can also include service contracts, training, installation, and other non-equipment items as part of your equipment purchase. 

No. An equipment lease is set up quite differently than a traditional loan. There are no amortization schedules or the traditional compounding of interest that is associated with a traditional loan. The yield on a lease purchase is based upon a "rate factor" or cost per $1,000 of funds borrowed. Also, you must remember that an equipment lease is set up as a rental purchase with the option to own at the end of the lease. 

No. Leased equipment is treated as a business expense and is not reported on the business owner's personal credit report; therefore, credit scores and debt ratios are unaffected.

Yes. We understand the importance of having the proper lending program in place. That is why it is in our best interest to provide adequate funding for our entire customer base. We have programs available for all different kinds of business owners, from well-established businesses, brand new start-ups and those who might have some credit challenges.

Usually within one business day or less, we can have an application processed and approved.

Traditionally, only one or two payments are due at signing. These will typically be applied to the security deposit or as the first and/or last payment. Either way, the funds are applied to the term of the agreement or it can be refunded to the business owner.

The authorized owner(s) or officer(s) of the company should sign the paperwork. On rare occasions, we might require a cosigner to sign along with the authorized owner(s) or officer(s).

We do allow for early payoff at any given time without penalty. However, it is not always in your best interest to pay off an account in the first few months. Here are a few important things to think about before paying off early.

• Lease purchases are subject to the rule of the "sum of the remaining payments" with a discount that may be 4% and up
• Our exclusive Commercial Finance programs allow for early payoff using the rule of the "remaining principal balance." Your personal account manager can help you determine what plan is best for you.

Yes. Equipment can be exchanged for more advanced upgrades or additional equipment can be added easily without any more applications to complete.

Section 179 of the IRS Tax Code allows a business to deduct, for the current tax year, the full purchase price of financed or leased equipment and off-the-shelf software that qualifies for the deduction. The equipment purchased, financed, or leased must be within the specified dollar limits of Section 179 , and the equipment must be placed into service in the same tax year that the deduction is being taken. (The equipment must be put into service between January 1st and December 31st of the year the deduction is to be taken) Here is a link to the current Fact Sheet from IRS about new rules and limitations under that Tax Cuts & Jobs Act . 

On our Glossary Of Commonly Used Terms , you can find a list of words that you may come across in equipment financing, or hear when people talk financing equipment for their business.