Frequently Asked Leasing Questions
Q) Who can lease?
A) Businesses, non-profit organizations, associations and municipalities all benefit from leasing. We cannot lease equipment to an individual for personal use.
Q) How does leasing affect my bank line of credit?
A) Leasing provides an additional source of funds which supplements existing credit lines. Established bank lines are unencumbered and remain available for operations, expansion, and/or acquisitions.
Q) How is credit approval determined?
A) Factors determining approval include the type of equipment, vendor reputation, financial statements, length of time in business, type of business, references from financial institutions, and D&B or other credit bureau ratings.
Q) What factors determine monthly lease payments?
A) Monthly lease payments are determined based upon many of the same factors listed in the approval process as well as the cost of the equipment, the term of the lease, and the type of lease plan chosen. The lease term usually ranges from 12 to 60 months.
Q) Is a down payment required?
A) Typically not, however, a security deposit can often result in a lower monthly payment. The amount is usually small and, unlike a down payment, it is a true deposit which can be applied to a purchase option for the equipment’s acquisition, if desired.
Q) Can a finance agreement be cancelled?
A) No, but the product or services can be traded or upgraded.
Q) Who should sign the finance agreement?
A) As in any financial arrangement, the lease should be signed by an authorized officer of the corporation, non-profit organization or municipality, by one of the partners of a partnership, or by the owner of a sole proprietorship.
Q) Who is responsible for service and maintenance of equipment?
A) You, as lessee, receive all the benefits of the “buyer” warranties. Therefore, you are responsible for the service and maintenance of the equipment when not otherwise explicitly provided for. You can thus be assured that the equipment is always in excellent condition and you will not incur restoration charges.
Q) When the lease period ends, can we purchase the equipment?
A) Yes! Options available include purchasing equipment, continuing to lease or returning it to London Leasing.
Q) Is insurance required?
A) Yes, we require that equipment be insured to protect you, because you need to protect your business operations, and LONDON Leasing as lessor.