 | “What will my up front expense be
with a lease?”
|
A
deposit equivalent to two advance payments is collected as
security. It is
evidence of a commitment to enter a lease agreement and allow
CapitalWerks to schedule delivery and installation.
Often the advance payments are less than the down payment
requirements with other types of financing.
| “What if our needs change before the
lease ends?”
|
The CapitalWerks
Lease Plan allows for trade ups during the lease term.
We calculate the trade up amount giving you credit for
payments made and help structure a new lease that fits within
your budget.
| “Leasing is to complicated.”
|
You will find our
documentation minimal. Often it is easier to lease than going to
your bank for financing.
| “Our company budgets well in advance
for capital equipment. I’m
afraid we can’t consider new equipment until our new budget
is approved.”
|
We
understand, that is why we often suggest leasing as an alternative
to cash purchase. With
leasing, your monthly payment is usually considered as an
operating expense, eliminating the need to budget for capital
equipment.
| “Leasing is too expensive, especially
when compared with bank financing.”
|
That
is a common misconception. When
you compare leasing to financing, you’ll find leasing compares
very favorably.
| “My company is cash rich so we’ll
be paying cash for our equipment.”
|
That may be prudent
if the equipment holds its value.
However, recommend leasing.
The general guideline in making investments is to lease
items that decrease in value.
We know that the value of most equipment will decrease
when new technology is introduced.
We also recommend leasing so that you’re able to take
advantage of tax savings and the obsolescence protection
available with the CapitalWerks Lease Plan’s trade up
program.
| “How do lease rates compare to rental
rates?”
|
Leasing is generally
a less expensive option when you will need equipment for more
than six months. Leasing
also offers the advantage of a flexible purchase option at the
end of the lease.
| “Can I pay off the lease early?”
|
Yes,
however there are generally no advantages to buying out of a
lease. Purchase of
the equipment may cause you to lose your tax advantages and you
will also lose your no penalty trade up option.
A lease is a commitment to rent the equipment for a
specified term. If
you want to return the equipment before this time, you are
obligated to make the remaining payments.
These are generally calculated net of the unearned
interest. We will
accommodate requests for a buyout by discounting the remaining
payments to provide you with a prepayment credit.
| “Why do you need my personal
guarantee?”
|
Personal guarantees
are required with closely held business entities or start up
companies. We
respect your business judgment and your personal guarantee is a
commitment that you will continue to be involved in decisions
made by the business you have built.
| “Why do you need financial statements
or additional information about my company?”
|
Often
information provided by credit bureau reports is insufficient.
Complete financial statements and other information about
your company’s operations can provide a more complete picture of
your business and allow credit analysts to approve transactions
they might otherwise decline.
| “We will be taking delivery of
equipment over three to four months.
Do I have to sign a new lease agreement each time?”
|
No.
You may take advantage of our Master Lease.
A Master Lease is a lease that allows you to add
equipment to the original lease by signing a schedule for each
addition to the lease.
| “My bank won’t allow me to finance
software or services. Can
they be included with the lease?”
|
Yes.
We’ll finance 100% of soft costs.
The soft costs may include freight, installation,
maintenance, software, training and even taxes.
Lease rates are higher if there is no hardware with the
take down.
|
