Equipment Leasing Frequently Asked Questions
How can my business benefit from leasing?
All businesses can benefit from utilizing equipment leasing, whether the business is new or established, financially strong or challenged. Leasing will provide you with the necessary equipment when you need it without the large down payments generally required by banks and often times with more lenient credit requirements.
What types of equipment can I lease?
Brinsaire Financial Group can arrange equipment leases for all types of equipment, as long as it is used for business purposes. We have arranged leases for all types of equipment including : office equipment, large printing presses, vending machines, titled vehicles, DJ equipment, video production and many other types. We currently do not have any equipment restrictions.
What types of lease terms are available?
Lease terms are 24,36, 48, 60, and 84 months. The 84 month term is used for large ticket items only and is provided on a case by case basis. Purchase options include Fair Market Value (FMV) , $1 Buyout, and 10% Put.
How is a lease different than a loan?
A lease is an agreement to make payments for a specific amount of time for the right to use the equipment owned by the lease company. A loan is a financing vehicle to pay for equipment owned by the user of the equipment.
What is needed to qualify for my equipment lease?
We provide application only programs:
For Start Up Businesses our application only program is up to $35,000
For Established Businesses we have application only up to $150,000
What kind of investment is required to obtain my equipment lease?
Generally we require first and last payment. If there are credit problems we may require a security deposit or some form of collateral.
What are your minimum and maximum lease amounts?
Our minimum lease amount is $2,000 our maximum lease amount is $5 Million.
Do you finance soft cost such as installation & service?
Yes, we provide 100% financing including soft cost.
Do you finance software?
Yes, we will finance 100% software including installation and training.
My business is a new / start up business with less than 2 years in business. Can you arrange a lease for my business?
Yes, we specialize in obtaining equipment leases for new businesses!
I have located the equipment I want to lease for my business, but I want to purchase the equipment from several different vendors. Can all the equipment be put on the same lease?
Yes, We will arrange to put all the equipment on the same lease.
What happens at the end of the lease?
What happens at the end of your equipment lease is up to you. You may make that decision at the beginning by the type of lease you choose, or more likely, you’ll want to choose a lease that allows you the flexibility of waiting until the end of the lease to decide. Generally it will be one of these choices:
You may return the equipment at the end of the lease with no further obligation. Assuming the equipment is in normal working condition; your security deposit will be refunded to you.
You may re-lease the equipment. Many leases offer annual or monthly renewals at re-negotiated lease payments. Because the leasing company has already received a good deal of their investment back, you can generally look for drastically reduced lease payments.
You may trade in or upgrade the equipment for a lease on newer equipment. In this way you may effectively get the value of “trade-in” on equipment you didn’t even own.
You may purchase the leased equipment. In the case of the so called “$1-Buy-Out” lease, you’ll take ownership for $1.00.
What’s FMV? (Fair Market Value)
At the end of the term the purchase price is negotiated between you and the leasing company. Sometimes an independent appraiser can be called in to help establish a “Fair Market Value”. Frequently this is pre-estimated at 10% of the equipment’s original price. Lessees who keep in mind that the leasing company doesn’t want to end up with the equipment at the end of the lease generally are able to negotiate the most favorable purchase options.
Things your banker may not tell you!
Leasing uses up your credit line. It comes as an untimely surprise to many business people when the available cash they’ve been counting on through their bank credit line is reduced by the amount of equipment leases they’ve done with the bank’s leasing department. Because commercial credit and leasing are frequently different departments with the bank, it’s easy to assume that the commitments made by each are separate and cumulative.
That’s rarely the case. That’s also increasingly why successful money managers plan ahead and establish multiple, unrelated, credit sources, turning to independent, non-bank leasing companies for their equipment needs. Your bank has a credit limit that they’ll extend to you and typically whatever you do with them counts towards it whether it’s short term cash borrowing or long term leasing. If you want to be sure to have cash available quickly when you need it, you won’t want to tie up that credit line in leasing fixed assets. Turn to independent leasing specialists. That’s all they do . Keep your money in the bank.
What is the leasing rate on the lease?
Since the customer is leasing and not taking out a bank loan to finance the purchase, there is no “interest rate” as we usually think of one. It is more like renting office space. The customer is paying to rent the equipment, with the monthly payment amount based on the type of leasing plan they choose, the terms or the lease, and the cost of the equipment. It is all based on a “rate factor”. The “rate factor” is a percentage of the cost of equipment calculated over a specified term.
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