What are the benefits of a Lease?
Leasing offers many advantages over traditional financing methods. Leasing is FASTER & EASIER which makes it an attractive option for many companies. Benefits include alternative acquisition strategy, off balance sheet financing, fixed regular payments, and financing 100% of equipment costs. In addition, leasing conserves both working capital and lines of bank credit, and may reduce the amount of taxes paid.
Can I Raise Working Capital with a Lease?
Yes Definitely . Working Capital in many small to mid-sized businesses is always in short supply and should not be used for equipment purchases in most cases. Significant money can be raised easily with a “Sale & Leaseback” through Alpalease. It is simply refinancing your existing equipment. Computers, Fax machines, Furniture, Forklifts, Autos etc. can all be used for this purpose. You do, however, have to show proof of ownership and value.
How does leasing effect my bank line credit?
Leasing provides an additional source of funds, which supplement existing credit lines. Established bank lines are unaffected and remain available for operations, expansion and/or acquisitions
When the lease period ends, can we purchase the equipment?
YES. Options available definitely include purchasing the equipment. Usually for either $1.00, 10% or Fair Market Value, whichever was agreed to in the Lease Agreement.
Who should sign the lease?
As in any financial arrangement, the lease should be signed by an authorized officer of the corporation, non-profit organization, or municipality, by one of the partners of a partnership, or by the owner of a sole proprietorship
Who can lease?
Corporations, Proprietorships, LLC’s, Partnerships, Other Business Entities, Non-profit Organizations, Associations and Municipalities all benefit from leasing. We do not lease quipment to individuals for personal use (consumer leases).
What is the procedure for leasing equipment?
After the credit information provided on the lease application is reviewed by our credit department, flexible terms are custom-developed. Then a formal Letter of Commitment outlining the terms and conditions is issued for the customer to review and accept. Upon receipt of the executed Commitment and any advances, the Lease Agreement itself is then prepared and overnighted to the customer for signing. Once the equipment is delivered, the customer receives a Delivery & Acceptance (D&A) phone call from the underwriter to confirm their acceptance of the equipment by the customer. Then the vendor is paid directly via overnight funds.
How is credit approval determined?
Factors determining approval include the type of equipment, vendor reputation, the length of time in business, type of business, references from banks and financial institutions, trade references and other credit bureau ratings.
What factors determine monthly lease payments?
Monthly lease payments are based upon many of the same factors listed in the approval process as well as the cost of the equipment, the term of the lease, and the type of lease plan chosen. The lease terms usually range from 12 to 72 months and up to 84.
Will a down payment be required?
No. A down payment is generally not needed, however, a security deposit can often result in a lower monthly payment. The amount is typically small and, unlike a down payment, it is a true deposit which can be applied to a purchase option for the equipment’s acquisition at lease end.
Is insurance required?
Yes, we require that the equipment be insured for theft, fire or other losses.
Who is responsible for service and maintenance of the equipment?
You, as lessee, receive all the benefits of the “buyer” warranties. Therefore, you are responsible for the service and maintenance of the equipment when not otherwise explicitly provided for. You can thus assure that the equipment is always in excellent condition and you.