Frequently Asked Questions About Equipment Leasing

Why Lease?

80% of US businesses lease finance at least one piece of equipment. It makes excellent sense in a variety of circumstances. Leasing allows 100% of the purchase price of the equipment to be financed so you won't need to come up with a hefty down payment, and also allows for soft costs like shipping, installation and training to be included in the financing.

By leasing you:

• Optimize cash flow
• Conserve capital
• Improve budget planning
• Save personal credit for personal use
• Allow new equipment to generate income and pay for itself over time

Capital Leases (you own the equipment at the end of the lease)

• $1 purchase option
  The entire purchase amount is financed. At the end of the lease a $1.00 payment is made and the equipment is yours.
• 10% purchase
  Has the advantage of a lower monthly payment. At the end of the lease, a lump payment is made which is equal to 10% of the purchase price. Equipment is owned after 10% payment is made.

True Lease

• FMV (Fair Market Value)
  This type of lease is a great way to stay ahead of rapidly changing technology and allows for upgrading to new equipment as needed. FMV leases also allow you to expense your payments and accelerate depreciation. The equipment will be purchased at fair market value at the end of the lease term. Sometimes this is capped at 10%. Consult your tax advisor for other tax benefits.

Lease Terms

Although we can tailor lease terms to your specific needs, standard terms are from 24-60 months. A shorter time frame keeps financing costs lower. A longer term allows expensive but necessary equipment to be obtained with a low monthly payment.

How Does Leasing Work?

Our approval process is based on a simple, one page application.

Complete and fax to us the one page application, including information on the business entity, the equipment being purchased, the cost, and information on the vendor.

Our credit department assesses the status of the applicant. The application may be approved within minutes or additional information may be requested. Once approved, we make great effort to provide you with the best possible rate and the lease terms requested.

Lease documents, along with detailed instructions, are faxed or over-nighted to you for signature. A purchase order is sent to the vendor(s) once you are satisfied and have signed and sent back to us the appropriate documentation.

Once the vendor has the purchase order, the vendor will ship the equipment and schedule installation. After successful installation, we call you for verbal verification that the equipment is in good working order. In some cases, a delivery inspection may be requested.

After verbal verification, the vendor is paid in full and the lease starts.

Our lease specialists are dedicated to providing full service by being available to answer your questions at any time and to resolve any difficulties that may arise. At all times, control of the process is in the hands of the customer. The lease does not start until you specifically authorize us to pay the vendor, not before.

Every lease at Chase Industries begins with our easy one page application. Depending on the size of the transaction and credit considerations we may ask for additional information including some or all of the following:

• Personal financial statement
• Personal tax returns
• Business tax returns
• Recent bank statements
• Interim financials
• Business plan

Most of our transactions are application only and do not require additional documentation, but you should be assured that if we do request it, we are working hard to get you the lowest possible payment.

Chase Industries offers deferred payment as well, but we find that the majority of our physicians make the decision to pay the first and last when armed with all the facts. Deferred payment is a convenience, and like any convenience service it has additional cost.