Who can lease?
Any company, organization or partnership. Eight out of ten American companies lease equipment.
Who owns the leased equipment?
Lease One Financial Corporation, as the lessor, is the owner.


What is the process for leasing equipment?
Lease One reviews the credit information supplied. Upon approval, the lease agreement is prepared by Lease One. When the equipment is delivered, Lease One pays the dealer and begins billing the lessee for the agreed upon lease payments.


Is a down payment required?
A security deposit, usually equal to one or two months' lease payment, is generally needed. This differs from a down payment in that the amount is typically much smaller and it is a true deposit which can be applied to the purchase price of the equipment at lease-end, or returned if there are no other payments due.


How are lease payments determined?
The monthly payment is based on the term of the lease, credit standing of the lessee, cost of the equipment, and the type of leasing plan the lessee chooses. The initial term of a lease usually runs from 36 to 60 months.


What are factors used to determine credit worthiness?
Type of business, length of time in business, financial condition as indicated by the lessee's financial statements, references from financial institutions, and D. & B. or other credit bureau ratings.


Can the lease be canceled?
Usually no, but equipment can be traded in for new, leased equipment before the expiration of the initial term.


Can equipment be purchased at the end of the lease?
Yes. The lessee has the option of continuing to lease, purchasing the equipment, or returning it to Lease One. At lease end, Lease One will also offer to finance the purchase price of the equipment for the lessee's convenience.


Who should sign the lease?
The lease should be signed by an authorized officer of a corporation, by one of the partners of a partnership, or by the owner of a sole proprietorship.


Who services or maintains the equipment?
The lessee receives the benefit of all "buyer" warranties and is responsible for the cost (if any) of maintenance. The equipment vendor usually performs the maintenance.


What about insurance?
For the protection of both Lease One, as owners of the equipment, and of our lessees, who need the equipment for their business operations, we require that the equipment be insured.


How does the lessee account for the lease?
The lease can be structured so that 100% of the payment is deducted from income taxes. At the same time it is not recorded as a loan on the balance sheet.


What effect does leasing have on the lessee's bank line of credit?
Established bank lines are usually unaffected and can be maintained for day-to-day working capital needs.


Why lease?
There are a number of advantages which make leasing an attractive option for many firms. These include the fact that leasing offers fixed regular payments (not floating), provides financing for 100% of the equipment cost, allows businesses to pay for equipment as it is used to generate income, conserves both working capital and lines of bank credit and may offer certain tax advantages

Lease-One Phone: 314-645-4440, david@lease-one.com

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