Frequently Asked Questions
WHAT CAN BE LEASED?
Virtually any type of equipment can be leased (new and used), from the many types of technology items listed below to all types of manufacturing and industrial machinery, in addition to titled vehicles.
- Server Equipment
- Laboratory Equipment
- Construction Equipment
- Computer Equipment
- Sound Equipment
- Networking Equipment
- Office Equipment
- Medical Equipment
- Telecommunications Equipment
- CAD/CAM Systems
- Phone Systems
- Point-of-Sale Equipment
- Manufacturing Equipment
- Automotive Equipment
WHAT TYPE OF LEASE STRUCTURES ARE AVAILABLE?
- Lease Financing for Hardware, Software, Integration and other "Soft Costs"
- Operating/FASB-13 Qualifying Leases
- Lease Lines of Credit
- Sale / Leasebacks
- Innovative Technology Lease Structures
- Technology leases for Venture Capital backed “emerging growth” firms
What is a Lease?
Applying for a lease is easy. You can apply on-line by completing our on-line application. You can also print out our on-line application and fax it to us. You can also call and speak to one of our leasing representatives.
What types of leases are available?
We offer $1.00 Buyout, 10% Buyout and Fair Market Value lease options.
Who can lease equipment?
Any company, organization, non-profit, or association and all municipal, state and government agencies can apply for equipment leasing.
Leasing is a simple cost effective way for your business to acquire its necessary capital equipment without using up valuable and limited credit lines, that you may have with your primary bank. Leasing offers a new source of credit with the added benefit of allowing you to expense the payments when structured as a tax lease.
What are the up-front costs for a lease?
Usually just the first and last monthly lease payments are required, in addition to a nominal documentation and filing charge for processing and filing the lease documents. The up-front payments are a lot smaller than a down payment would be for a purchase and are applied to your total lease payment obligation.
Can I cancel the lease?
Unlike a more expensive true rental program, the lease is non-cancellable. However, you can buy out of the lease early and ask to get a discount off the unearned interest. Or, you can arrange to upgrade into new equipment and wrap the remaining payment obligation into the lease payments of the new equipment at a discount.
What about sales tax?
Unless you have been exempted by your state, you must pay sales tax. However, we provide you the benefit of including this into the lease obligation. Unlike buying the equipment, you don’t have to worry about this impacting your valuable cash flow.
What about insurance?
You are required to have your equipment covered by your insurance carrier. Simply have your agent send a certificate of insurance to us and we will take it from there. Or, Select Business Credit can arrange to have the item covered by a certificate issued by ELPA (Equipment Lessors Protection Association) and you will be billed for the annual premium.
How does it work – what is the process?
After receiving your completed 1 page application (see above), we review your credit information and upon recommendation for approval, lease documents with the terms are sent out for your signature. This process often takes less than 24 hours. Upon receipt and review, we arrange to have your vendor ship the equipment to you. Or, if it needs to be ordered, or built, we will work with the vendor to expedite this. Once the equipment is delivered and inspected by you and you are satisfied, you then authorize us to pay the vendor and the lease commences. In some situations, the vendor may need partial pre-funding prior to manufacturing or shipping your equipment. If you would like us to do this for you, the lease commences immediately upon your authorization for us to pay the vendor.
Does leasing cost more than the bank?
In most cases, equipment leasing costs less than traditional financing. Typical up front costs are only 2 advance payments which are applied directly to the equipment lease obligation and when you factor in the tax benefits, the total cost of capital works out to be much lower. Traditional financing often requires large down payments and is inflexible when it comes to structure, terms and what miscellaneous soft costs it is willing to finance. Using your valuable cash is a direct cost to you and must be factored into the comparison.