Frequently Asked Questions - FAQs

What credit score do I need to be approved?

For faster approvals, you will need 650 Fico if your credit score is lower we can still get you an approval but credit will ask for more documents to support the request.  

Do I have to buy the equipment from a dealership? 

You can buy it from a dealer or a private owner.  A dealer is much more recommended but we can absolutely take a look at the private sale. 

What type of Equipment can LeasingCore finance?

We can consider all types of equipment. Every application is different but If it helps your business we can try to make it happen. 

Exactly what has to happen before I can receive the equipment?

LeasingCore makes the leasing process simple and efficient. We will assess the credit information supplied on your application. One of our expert lease advisors will then review the process and documents with you and/or your vendor (depending on the vendors’ level of involvement in the lease process). Documents are prepared. You carefully read them over and sign, date and return the documents. Your equipment is funded and released when the Funding department has all of the required documentation.

 

If I have questions during the term of the lease, whom do I contact?

It is best if your account manager is the first point of contact. you can contact us by phone or by e-mail.

 

What are my options at end of lease?

Depending on the terms you choose, a lessee has an option of continuing to lease, purchasing the equipment, or returning it to the Leasing Company. Should you choose to purchase the equipment, the purchase price is determined by the Fair Market Value (FMV) of the used equipment. Another option is the 10% buyout whereby at end of the lease you pay just 10% to purchase the equipment this is the security deposit normally asked at beginning of the deal. End-of-term options are decided by you and structured into the lease prior to execution.

 

May I end my lease early?

If you choose to end the lease early, you may. It is a rare situation that would make terminating a lease during its term an advisable option. However, it is based on the balance of payments plus tax and any payment arrears. We attempt to maximize your options with equipment upgrade programs.

 

What about insurance?

To protect both the Leasing Company and Lessee, insurance is required on all leased equipment. 

 

 

How will I be billed?

You may have the payment set up to automatically debit your bank account via ACH.

 

If my company is new, can I still lease?

Yes, pending credit approval and the completion of all required documentation. A security deposit may be required. Contact one of our expert lease advisors for complete details.

 

How much does leasing cost?

Leasing is not expensive. Your monthly payments are determined by the options you choose and of course the equipment you lease. How is the monthly payment calculated? Monthly payments are determined by a Lease Rate Factor: a periodic rental payment to a Lessor for the use of assets. Lease Rate Factor X Equipment Cost = A Customers Monthly Payment.

 

How much do I have to pay upfront?

A typical lease would require 10% Security Deposit or 10% Down Payment depends on your credit history and TIB.

 

What factors are used to determine creditworthiness?

The elements of your lease application, time in business (if applicable), references from banks and trades. Personal and/or credit bureau ratings will be reviewed (specific to each lease request).

 

What effect does leasing have on my bank line of credit?

With a lease, no money is borrowed so your bank line of credit is unaffected, you are leasing to own.

 

What if the equipment I receive has problems?

On most deals, we issue equipment on-site Inspection to make sure the equipment is in good conditions. If the Vendor has a warranty we recommend you to get it. We recommend you to take your time and find good equipment since you are responsible if its bought AS-IS with no warranty.

 

Who owns leased equipment?

The leasing company, as lessor, is the owner of leased equipment unless you decide to purchase the equipment at the end of your lease – or during the lease term.

 

Who services/maintains equipment?

You receive the benefits of all "buyer" warranties and are responsible for maintenance. Once the equipment is off warranty you have the responsibility to ensure the equipment remains in good working order.

 

Can equipment be purchased at the end of the lease?

Yes. You can choose to continue to lease, to purchase the equipment, or to return the equipment to the leasing company.

 

Can I still lease equipment even if I have already purchased it?

Yes. This is known as a sale-leaseback. You can usually do this for equipment that has been purchased within the previous 6 months.

 

How does a customer account for the lease?

The options you choose upfront may have tax and accounting implications. You should speak with one of our expert lease advisors, and we strongly urge you to discuss the topic with your accountant to determine your best option(s).

 

Are leases tax deductible?

Yes, Leases: For tax purposes operating lease payments are a tax-deductible expense for the lessee (the customer), and the lessor, We strongly urge customers to speak with their accountant to determine the best option(s) for them.

 

 

What about sales tax?

Applicable sales tax is added to the monthly payment over the term of the lease.

I have changed banks. What should I do about my pre-authorized payments?

Email a voided copy of a check from your new bank account along with your name, the name that the lease is under, and the lease number (if available) credit@leasingcore.com Also, please indicate when the new account is effective at least 15 days prior to the next lease payment. We will make sure the funder is notified of the change in your banking information.

 

My lease term is near its end. What do I do?

To determine the choices you have with your lease, you should contact your Account Manager. lease advisor before the end of the term or option date. He/she will let you know what your available options are, such as the option amount, etc.

I need a copy of my lease for my records. Whom should I contact?

You can either contact your LeasingCore lease advisor directly or call our customer service department. Either way, we are more than happy to provide you with the documentation you require.

 

I have had a bankruptcy. Do I still qualify for a lease?

We are willing to consider companies that have been released from bankruptcy. Since you will be viewed as a higher risk, you should expect to pay a higher rate and require additional guarantees.