Frequently Asked Questions

Below is a listing of the most frequently asked questions we encounter. Please click the specific question to see the answer.

WHAT IF...

... there is more than one vendor?
... there is one vendor, but not all the equipment will be delivered at the same time?
... the vendor requires a deposit before they will accept the order?
... the purchase price includes installation and training?
... the lessee has made a deposit?
... the vendor will not accept a leasing company purchase order?
... the equipment isn't satisfactory?
... the lease is signed, the vendor is paid and then there is an equipment problem?
... I do not want the equipment before my lease is over?
... I pay off early. Will I have to pay a pre-payment penalty?

Please view our Policy Statements related to:

Nominal Purchase Options
Commitment Fees
Early Terminations
Advance Rents and/or Security Deposits

WHAT IF there is more than one vendor?
Frequently equipment is obtained from multiple vendors. Generally this doesn't represent a problem unless the number of vendors is very large or the scheduled deliveries are very far apart. Payment can be made at the conclusion of delivery or to each vendor as they deliver their equipment. The lessee should make the lessor aware of these requirements and get the lessor's approval at the beginning of the credit approval process.

WHAT IF there is one vendor, but not all the equipment will be delivered at the same time?
Payment to a vendor can be made as equipment is delivered or at the conclusion of delivery. The lessee should agree to terms with the vendor and get the lessor's approval at the beginning of the credit approval process.

WHAT IF the vendor requires a deposit before they will accept the order?
Deposits can be paid by the lessee or the lessor. If the lessee wishes the lessor to make the deposit on their behalf, the lessee should make the lessor aware and get their approval at the beginning of the credit approval process.

WHAT IF the purchase price includes installation and training?
These soft costs can usually be included in the amount being financed provided they are not disproportionate to the actual equipment cost. The amount of soft costs should be disclosed to the lessor at the beginning of the credit approval process.

WHAT IF the lessee has made a deposit?
In most cases, lessee deposits can be returned at funding or can be used as a reduction of the amount to be financed.

WHAT IF the vendor will not accept a leasing company purchase order?
Some vendors will not accept purchase orders other then their own. Most vendors’ purchase orders require a commitment to pay upon delivery, not acceptance. Lessors will generally agree to do this, but require the lessee to acknowledge that they will hold the lessor harmless from any loss, expense or cost the lessor incurs regardless of the acceptability of the equipment.

WHAT IF the equipment isn't satisfactory?
Most lessors will obtain a telephone verification that the equipment is as ordered and working to the lessee's satisfaction before they remit final payment to the vendor. If there is any dissatisfaction, the lessee may refuse to 'sign off' and therefore prevent the lessor from making final payment.

WHAT IF the lease is signed, the vendor is paid and then there is an equipment problem?
The lessee has all of the benefits of ownership with respect to Warranties and Guaranties and may exercise them as needed. This extends to the vendor and the manufacturer.

WHAT IF I do not want the equipment before my lease is over?
Most leases are non-cancelable and as such you are responsible to pay all the rentals on or before due date. However, most lessors will allow you to prepay your lease and give you a rebate of unearned finance charges provided you have made your rental payments on time. In most cases lessors will not give you this option in writing, but will tell you what their policy is with respect to early terminations.

WILL I have to pay a pre-payment penalty if I pay my lease off early?
Probably not. Pre-payment penalties generally apply only to those situations in which the lessor has factored depreciation or some tax credit into their rate calculations. Consequently, if the lease is paid early they may not receive the benefit they bargained for. They will likely make up for this shortfall through a penalty charge.