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“Equipment Leasing is a smart way for business enterprises to acquire the technology they need to be competitive while preserving capital to invest into other key areas of the business.”
Lease-Line can arrange a lease for almost ANY TYPE OF EQUIPMENT used in your business, even 100% software!
Advantages of Equipment Leasing
Equipment Leasing is convenient Unlike dealing with bank loans and other alternative types of financing, equipment leasing is an easy and convenient process. Typically, all Lease-Line requires is a one-page application for any request up to $35,000. Requests above that amount may require financial statement disclosure Equipment Leasing balances usage and cost Equipment leasing makes sense when the equipment you use creates a return that exceeds its cost. In other words, leasing allows you to set a fixed monthly payment for the use of equipment that creates an anticipated return exceeding that payment. That way you are certain that your operation is cash flow positive and the equipment serves its purpose Equipment Leasing provides 100% financing Most leases simply require a first payment and a security deposit paid in advance along with a small documentation fee. Lease-Line pays your vendor in full including installation, delivery and taxes. Equipment Leasing preserves credit lines Credit lines with banks and other depository institutions are precious and hard to establish. Conserve those lines for inventory, A/R or other uses and emergencies. Lease-Line will take care of the financing for your capital equipment so that your lines of credit remain free. Equipment Leasing provides for flexible payments Equipment Lease payments can be structured to meet your needs. This adjustment is possible by correcting the residual value of the equipment due at lease end. By changing your end of lease balloon payment from $10,000 to $25,000 for example, you can lower your monthly payment significantly. Furthermore, Lease-Line can structure flexible step up and step down payments to reflect any know seasonality in your business. Equipment Leasing increases purchasing power Your may need a $50,000 machine but your available cash/credit only allows for $30,000, you may settle for a smaller piece of machinery that only meets your needs half-way. Lease-Line can increase your purchasing power by allowing you to lease the needed equipment for the job. That way you get the equipment you need at an affordable price to meet demand and promote growth.
Equipment Leasing provides options Equipment leasing provides flexible end of lease options. Equipment at the end of the lease term can returned, extended or purchased. Equipment Leasing provides fixed rate financing Equipment leasing is not subject to market fluctuations and interest rate increases. You can negotiate the monthly payments up front and secure a fixed rate for the life of the lease. This makes it much easier to project cash flow and budgets for planning purposes. Equipment Leasing is tax-advantaged A properly structured equipment lease agreement may allow you to receive tax benefits such as treating the equipment lease rental as an expense. These benefits and their availability are subject to an array of factors and we suggest you talk with your accountant about these benefits. Equipment Leasing conserves working capital Keep your hard-earned cash on hand or invest it into other key areas of the business. Lease-Line can help you retain the working capital your company receives since it covers all costs associated with capital equipment purchases. This ability to grow and keep your cash ultimately puts you ahead of your competition and ensures long-term profitability. Equipment Leasing is a hedge against inflation Since your payments apply to the use of the equipment you do not pay for ownership on equipment that consistently depreciates. Furthermore, your cash savings can yield a return that fights inflationary pressures. Equipment Leasing is simple. No cumbersome documentation. Credit decisions are made quickly and for established businesses, personal guarantees may not be required.
The Lease-Line Equipment Leasing Process 1. Download our lease credit application, fill out the applicable sections, then email or fax it to us. Emaill - lease@lease-line.com or fax to 905-681-2433 Credit Application 2. Reply to any follow-up questions A credit package is then submitted to our credit committee. You may be asked to provide answers to complete the credit package before or after the credit committee review. Approval time is generally within several hours to one business day once the completed credit packet is received and all outstanding questions are answered. 3. Credit decision We will send a credit decision to you as soon as it is available. An “Approved” credit decision will include an approval number and the terms & conditions of the equipment lease approval. Simply review the lease approval then give us the go ahead by email. We will prepare the lease contract and send it to you for signatures, the best way, by email, fax or courier. . 4. Return lease documents Once the lease contract and supporting documentation is returned, we will issue a Purchase order to the vendor or supplier of your choice based on the final equipment or software quote. 5. Verify delivery and acceptance Once the equipment is delivered and deemed acceptable by you, by our independent auditor, the lease term begins and the vendor or supplier is paid.
Questions? HOW DOES EQUIPMENT LEASING WORK? Equipment lease financing is simple and convenient. You do the research and choose the make and model of equipment best suited for the business enterprise from the vendor/supplier of your choice, for the best cash deal. The potential Lessee then contacts Lease-Line, completes a credit application & provides supporting financial information as required. Upon lease credit approval and acceptance, Lease-Line will forward the lease contract for signatures. Once the lease contract and related documentation are returned to Lease-Line, a purchase order is issued to the vendor. The vendor then delivers the equipment to the lessees' place of business. After an independent auditor has confirmed delivery of the equipment, Lease-Line will pay the supplier and the lease commences. Typically, a lease involves no money down, which basically results in 100% financing. The lease client doesn’t worry about paying Taxes up front either, since they are calculated on the rental. Two rentals and a signed lease contract seal the deal. On a five-year lease, that amounts to less than 5% investment. Effective costs compared with conventional bank financing are close. Those who can take advantage of the tax deductibility of the rentals can often increase expenses for tax purposes thereby reducing or deferring the payment of taxes. Terms are tailored to the useful life of the equipment with a fixed rental throughout the term. Upgrade privileges are standard. Trade up value, or a purchase option can be predetermined What is the minimum size of an equipment lease? $1,500.00 What is the term of an equipment lease? A lease can be structured for a term of 1 to 6 years. What are my options at the end of the lease? 1. Fair Market Value at the end of the initial term. 2. A predetermined purchase option during the term of the lease of up to 30% of the original equipment cost. 3. A $10.00 purchase option at the end of the term. Will Lease-Line contact me when the purchase option is available? Yes, we guarantee to remind you at least 30 days in advance of the purchase option date. Types of equipment leases Fair market value equipment lease: The lessee simply returns the equipment at the end of the lease term.The lessee may continue leasing if the equipment is still suitable or the lessee may be able to purchase the equipment at Fair Market Value (FMV). The Lease-Line GUARANTEES to give you at least 30 days prior notice of the purchase point.* Stretch equipment lease: our most popular equipment lease The equipment lease contract is structured with a predetermined purchase option point. If the lessee does not purchase the equipment at the option point, lessee continues leasing to the end of the term at which time he may continue leasing, return the equipment to the Lessor, or purchase the equipment at Fair Market Value (FMV). The stretch lease is set up with a guaranteed predetermined purchase option, for example, 10% of the original equipment cost. If the lessee chooses NOT to take the purchase option at the purchase option point, the 36th month, the lease continues to the end of the lease term, 40 months. At this time the lessee may purchase the equipment for FMV, return the equipment or continue leasing. A typical three year lease with a 10% option = 40 month term. The stretch term is calculated by dividing the purchase option by the rental & rounding up to the next whole number. This equipment lease structure gives the lessee time plan for the next equipment acquisition. Lease-Line GUARANTEES to give the lessee at least 30 days prior notice of the purchase point.* $10.00 Purchase equipment lease: The equipment lease is structured to a bargain price at the end of the term. This method may be not considered a lease because $10.00 is a bargain price. However, many non-profit, public sector type clients, as well as regular businesses use it at their discretion. For many low priced pieces of leased equipment, this lease classification is not an issue. In most jurisdictions as long as the equipment is on a lease contract rentals can be treated as an expense. We do not give accounting advice. Consult with your bookkeeper or accountant If you wish. Lease-Line GUARANTEES to give the lessee at least 30 days prior notice of the purchase point.* Seasonal equipment lease This type of lease is ideal for businesses with seasonal cash flows. Leases are tailored so that payments might be lower during the summer months and higher during the rest of the year, or vice versa. Semi annual, annual and quarterly equipment leases Various payment options allow you to match scheduled payments with your cash flow. Semi annual and annual payments are very popular in the agricultural industries. Step program equipment lease Step leases allow lease payments to either increase (Step-Up) or decrease (Step-Down) over the term of the lease to better meet unique cash flow situations. It provides an ideal match for revenue growth and financing. Lease-Line GUARANTEES to remind the lessee when the purchase option becomes available. It is the responsibility of lessee to advise us of any change of address or phone numbers during the term of the lease. What equipment can be leased?* Any NEW or USED equipment required by a business that helps it to produce income. Lease-Line has arranged equipment leases for so many equipment types that we can not list them all. Equipment Leasing Credit Criteria
The following credit guidelines will give a broad overview of how credit is generally considered. It is also useful in determining an estimate of what types of leasing programs may be available to you. The following guidelines should not be considered as "industry standard" but can assist us with providing leasing quotes by estimating basic credit criteria. Under no circumstances should the following credit criteria be expected to cover the credit of all applications received. Every credit bureau and business report is completely unique and the following credit ranges are for illustration purposes only. Each guideline assumes that the entity that is applying meets most of the credit criteria listed in each section. “A” Credit 1. Excellent business credit with many lines of credit 2. No Bankruptcies 3. Low revolving debt 4. Few credit inquiries in last 12 months 5. No evidence of suits, liens, collections, or judgments 6. No foreclosures or repossessions 7. Excellent score in credit reports 8. No slow pay activity on personal or business credit 9. If a corporation, established over 3 years. 10. Strong financial statements may be requested, depending on the size of the transaction and the type of asset. “B” Credit 1. Good overall credit with many lines of credit 2. No Bankruptcies 3. Lower revolving debt and under 50% credit utilization 4. Few credit inquiries in last 12 months 5. Evidence of suits, liens, collections, or judgments that are satisfied. 6. No foreclosures or repossessions 7. Good score in credit desk 8. No recent slow pay activity on personal or business credit. Personal co-lessee or Guarantee required. 9. New businesses and Corporations over 1.5 years old with good business credit. 10. Financial statements and/or PNW statement may be required, depending on size of transaction, type of asset and other credit decision factors. 11. Transaction may require structuring. “C” Credit 1. Higher risk business venture 2. Evidence of a few recent slow pays to creditors 3. Open suits, liens or judgments require explanation. 4. No foreclosures or repossessions 5. Revolving debt considered high, or high utilization of available credit 6. Explainable, high credit inquiries in last 12 months 7. Credit bureau scoring just outside credit reporting standards 8. Financial Statements and/or PNW statement will be required. 9. Personal or additional Guarantees 10. Structuring is required. “D” Credit 1. Bankruptcy less than 7 years old 2. History of slow pay to creditors since bankruptcy 3. History of suits, liens, judgments or collections 4. Foreclosure or repossession 5. High revolving debt on credit cards (without acceptable tax returns) 6. High credit inquiries in last 12 months 7. Unfortunately, we cannot lease to customers meeting this criteria Province of Quebec 1) Sole proprietors in the Province of Quebec. Entity must be registered in CIDREQ for a minimum of 3 years, posses a clean & acceptable beacon score, standard accepted assets and maximum dollar mount to be financed at this time, $20,000. 2) Business Credit Criteria, as above A & B credit only.