FAQ

1.  What is commercial leasing equipment?

Commercial leasing equipment is a financing solution that allows businesses to rent equipment for a specific period of time. This is a cost-effective way for businesses to acquire the equipment they need without having to make large upfront payments.

2.  What types of equipment can be leased?

Almost any type of equipment used for business purposes can be leased. This includes office equipment, vehicles, manufacturing equipment, medical equipment, and more.

3.  What are the benefits of commercial leasing equipment?

Commercial leasing equipment provides a number of benefits for businesses. This includes preserving cash flow, tax savings, flexible payment options, and the ability to upgrade or replace equipment at the end of the lease.

4.  How long is a commercial equipment lease term?

The length of a commercial equipment lease term varies depending on the equipment being leased and the financing company. Typically, lease terms range from 12 to 60 months.

5.  What is a fair market value (FMV) lease?

A fair market value (FMV) lease is a type of lease where the lessee pays for the use of the equipment and at the end of the lease term has the option to purchase the equipment at its fair market value.

6.  What is a capital lease?

A capital lease is a type of lease where the lessee has the option to purchase the equipment at the end of the lease term. This type of lease is typically used for equipment that will be used for a long period of time.

7.  Is it possible to negotiate the lease terms?

Yes, it is possible to negotiate the lease terms with the financing company. This includes the lease term, payment schedule, and other terms of the agreement.

8.  What happens if the equipment needs repairs during the lease term?

The responsibility for repairs during the lease term typically falls on the lessee, unless the lease agreement specifies otherwise. It's important to review the terms of the lease agreement to determine who is responsible for repairs.

9.  Can the leased equipment be upgraded or replaced during the lease term?

Yes, many commercial equipment leasing agreements include provisions for upgrading or replacing the leased equipment during the lease term. This is typically done by entering into a new lease agreement.

10.  What happens at the end of the lease term

11.  What happens if the lessee wants to end the lease early?

If the lessee wants to end the lease early, they will typically be responsible for paying either an early termination fee, or simply paying out the remaining balance. The details of the specifics is typically outlined in the lease agreement.

12.  Is it possible to finance multiple pieces of equipment on one lease agreement?

Yes, it is possible to finance multiple pieces of equipment on one lease agreement. This is known as a master lease agreement.

13.  Can the leased equipment be taken out for personal purposes?

No, the leased equipment is intended for business use only. Using the equipment for personal purposes is a violation of the lease agreement.

14.  Is insurance required for the leased equipment?

Yes, insurance is typically required for the leased equipment. This protects both the lessee and the financing company in the event of damage or loss.

15.  What are the credit requirements for commercial equipment leasing?

Credit requirements vary depending on the financing company and the equipment being leased. Generally, good credit is required

At the end of the lease term, the lessee typically has the option to purchase the equipment, return the equipment, or enter into a new lease agreement.