- Why lease - why not just borrow the money?
If you borrow money to buy and own equipment, you are using up availablecredit, which, if used for other purposes, has the ability to earn a return muchhigher than the cost of the lease payments.Leasing offers a new source of credit with the added benefit of beingable to "expense" the payments in most instances.
- Who can lease?
Any company, association, non-profit organization, or individual that is usingthe equipment for a business or commercial use. For additional assistance read the article titled: Is Equipment Leasing The Right Choice For Your Business?.
- What are the up-front costs for a lease?
Usually, just the first and last monthly lease payment. Unlike a downpayment for a purchase, these payments are smaller and are applied to yourtotal lease payments. In addition, a nominal documentation and filing fee isrequired for processing the lease documents and filing UCC-1 financingstatements required in your state. We do not charge an application fee.
- Can I cancel the lease?
The lease is noncancelable. However, you may arrange forprepayment of the lease or upgrade to a more sophisticatedpiece of equipment.
- Can I add equipment to the lease?
Yes, you can add equipment to the lease at any time. In most cases, any equipmentadded to your lease must cost at least $5000 or more.
- What about sales tax?
Sales tax is added to your monthly lease payment each month and chargedseparately.
- What is the typical process for commercial equipment leasing?
You fill out a simple, one-page credit application. In certain instances,other financial information may be required such as tax returns or financialstatements. The supplied credit information is reviewed and upon approval,the lease documents are prepared and sent to you for signing. A purchaseorder is then issued to your equipment vendor. Upon delivery of theequipment and acceptance by you, the equipment is paid for and the leasecommences. For more information on how we utilize credit scores when reviewing your application, please read our article, Credit Scores and the Lease Approval Process.
- What about insurance?
For your protection, it is required that the equipment be insured.You simply instruct your own insurance agent to send a certificate of insuranceto us at no additional cost to you. Or, Tiger Leasing can issue a certificate through the ELPA (Equipment Lessors Protection Association) and bill you for the annual premium.
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