What is a lease?
A lease is a non-cancelable agreement in which the equipment owner (Lessor/ Tennant) gives the user (Lessee/your company) exclusive use of equipment for a period of time (term) in exchange for lease payments.
Why lease vs. cash?
When considering the best financing option for your company, the general rule of business says to invest in assets that appreciate and finance those that depreciate. You will benefit from financing assets that depreciate, such as floor maintenance equipment, by transferring all risk of obsolescence to the Lessor/Tennant and freeing your business from any obligation to purchase equipment at the end of the lease.
Does a lease affect my credit line?
If you borrow money from the bank or another source to buy equipment, you immediately reduce your available credit line with that source. A bank may require a 20-25 percent down payment as well as additional collateral – a lease does not.
What are my financing options?
- FAIR MARKET VALUE (FMV) LEASE – usually provides the lowest monthly payment and is ideal for those who do not wish to own equipment.
- $1.00 PURCHASE OPTION LEASE – offers fixed terms and payments with an option to buy the equipment for $1.00 at the end of the lease.
- CUSTOM LEASE – we can design a custom lease to match your specific requirements and budget, such as flexible terms, alternative payment structures, and end-of-lease options.
- SHORT-TERM RENTAL – requires no long-term commitment while offering flexible terms. Rental agreements include an option to purchase at any time, applying a high proportion of rental payments to the fixed purchase price.
Can I finance a certified pre-owned machine?
Yes.
What are my payment options?
Flexible payment options are available to match you business needs, including monthly, quarterly, semi-annually, annually, seasonally or step.
How long is a lease term?
The term on a lease can be as little as 12 months, as long as 60 months, or any time frame in between.
What are my options at the end of a lease?
There are several options to choose from, depending on the type of lease. Four common options include:
- Renew the existing lease
- Return the equipment
- Buy the equipment
- Trade-in and upgrade to a new piece of equipment
Can I stop a lease?
If you need a new type of equipment or need to upgrade, we’ll restructure your lease allowing you to acquire the upgraded equipment. If you need to terminate a lease, buyout options are available:
- Pay the buyout and ship the equipment back
- Pay the buyout plus the purchase option price and keep the equipment
Can I purchase the equipment during the lease term?
Every lease includes the option for early buyout.
Contact your sales rep for details.
