Business leasing services

While leasing benefits are sound reasons for your company to consider questions will still arise. Knowing the answers to key questions is an important part of making the financial decision. Here are some of the most frequently asked questions about leasing arrangements.

Q. Why should we lease purchase or finance equipment instead of making a purchase?
A. One universal advantage of equipment leasing is that a customer only pays for the use of equipment over a term tied to the equipments use and productivity. Another important advantage is that state-of-the-art equipment is available to the customer without taking all of the risks of obsolescence that go with ownership.
Q. How do we compare financing proposals?
A. We offer competitive rates in all categories. Company managers should determine exactly how the proposals are presented. Are the advance payments, purchase options, and sale prices identical? Any variations in these items will cause differences in your monthly payment.
Q. How easy is it for us to add equipment at a later date?
A. Financing of additional equipment may be easily done upon completion of a one-page schedule to a Master Lease.
Q. What if we want to terminate a lease early?
A. When a lease is signed for a specific term, we will expect the customer to honor this agreement. In some situations, however, you must terminate a lease before the term has expired. In that case, a lease can be terminated after the customer pays us a termination charge encompassing the value of all unpaid lease payments, taxes, and purchase option price (if retaining equipment).
Q. Can we move the equipment from one location to another?
A. Yes, in most circumstances. We require a written request for relocation and will forward a written acknowledgment. It is important for us to know the location of the equipment since it either owns or has a security interest in it. In addition, there are state and local tax consequences related to the location of the equipment.
Q. What kind of tax benefit do I receive as a result of lease purchasing?
A. In many cases the monthly payment to us may be treated as a recurring business expense for tax purposes. Therefore, these payments are normally tax deductible. Since we own the equipment, it is taking the depreciation of the equipment. (All prospective lessees should consult their own tax and accounting advisors for definitive opinions in their own separate circumstances.)
Q. What are our current interest rates?
A. Current interest rates are reflected in our pricing. They vary based upon the amount of each individual transaction. We update these payment amounts to correspond with current interest rates and competitive data available in the marketplace. Many customers want to know the interest rate related to the payment amount they are given. Since an interest rate calculation is based on the equipment cost and various other factors, they must be addressed on an individual basis.
Q. How is Fair Market Value (FMV) determined?
A. Fair Market Value (FMV) is determined at the end of the lease term, or other relevant time, based on market conditions at the time. It is that price at which a willing buyer and seller are able to complete a sale. We invite customers to call us if they have any questions regarding end-of-lease options.

Speak directly to our business finance department by calling 0845 130 000