What is the interest Rate? Determining an interest rate is possible for some leases and not for others. It is our experience that using interest as a basis of comparison can be the detrimental to a financially sound decision. An unqualified rate can be ambiguous and often misunderstood. It is National’s policy to simplify the process by providing exact payment terms based on series of pre-qualifying questions. Lease quotes with National are quick, simple, free and delivered by email or fax.
Why lease - why not pay cash or just borrow from a bank? Working capital is the most difficult single thing to get in business. Working capital “money” is either obtained from Sales or borrowed. Banks will allow you to borrow up to a limit. Lines of credit and loans all go toward your total bank lending exposure. Financing equipment with a bank will limit your overall powering power with them. Bank lines of credit are indispensible business growth tool. Cash and bank lines are perfect for intangibles that cannot be otherwise financed. Advertising, inventory and unknowns are all good reasons to have a good relationship with you bank and bank credit lines. Equipment loans on the other hand will limit your company bowering power and thus limit your ability to grow. Equipment lease-financing with National expands essential borrowing powering.
Will a personal guaranty be needed? A “PG” may or may not be needed. A number of factors are considered. Typically guaranty’s are needed if your company is closely held or otherwise own by one or 2 people. If your company is new, like 5 years under current ownership, a pg may be required. Understanding your company with simple questions will enable us to organize the best approach for your company needs. Talking with a National Representative will provide the answers you deserve. We are here to help you succeed.
Who can lease-finance? Almost any business with relatively good cash-flow and credit can lease-finance equipment. National has programs for public traded companies to young businesses, not-for-profits, associations, religious organizations of all denominations and government entities.
What are the up-front costs for a lease? Monthly terms typically request just the first and last lease payment in advance, plus a nominal documentation fee. Unlike a down payment for a purchase, advance payments are usually under 4% of cost and are applied to your total lease payments. Quarterly, semi-annual & annual payments available as well as deferred and step payments.
Can I cancel the lease? Lease-financing is typically noncancelable however you may arrange for prepayment, with a possible discount or equipment upgrade. Planning your equipment acquisitions with a National professional will help identify the best, long-term financing fit. National also offers a unique “Easy Add-on” whole lease-financing agreement. Like a line of credit, National can qualify your company for a higher amount. Adding equipment then is stream-lined and with less paperwork.
Can I add equipment to the lease? Yes, you can add equipment to the lease. In most cases, any equipment added to your lease must cost at least $1,000.00 or more. Ask about National’s exclusive Master Lease “Easy Add-On “.
What about Sales, Use and other Taxes? National has a unique approach to lease-financing. We offer the best of both equipment ownership worlds. Lease when you want National to have ownership and finance when your organization wants ownership. If tax-exempt, it may make sense to have ownership in your organization. Your National Professional can help guide you. Applicable tax is added to your lease payment and charged separately. If financed it is kept on the vendors invoice. Property taxes can be managed by National Equipment Leasing Corporation if we are the Lessor (owner) of the equipment. We can also pass on the tax control to your organization. Ask us how simple it is and always consult your tax advisor.
Is there a penalty for paying off the lease early with National A Lease is generally non-cancellable, in other words all payments are expected, however at National we allow for an early pay-off with a discount and in other words there is a savings. We do not encourage entering a lease for a short term. Leveraging your company to grow is the reason to lease finance equipment. For a growing company, its not only good to have smart debt but can be vital. Your National Representative will prove to be an invaluable partner in your business long term success plan.
Contact Your National Professional Today! (800) 770-6352