Frequently Asked Questions
Who can lease equipment?
Any company, organization, association or municipal agency (city, county, state, and federal) can lease equipment through Preferred Lease. With our special new business program, even companies that have been established for less than two years can take advantage of the benefits of leasing.
What kind of equipment can be leased?
Preferred Lease provides leasing for all types of equipment, new or used. Some examples are computer (hardware or software), telecommunications, office, medical, automotive, mailing, printing, and construction. Preferred Lease even allows soft costs such as installation, service, warranties, and freight, to be included in the lease so these costs don’t become out-of-pocket expenses for the customer.
How long does it take to be approved?
Approval decisions are typically issued within 24 hours or receipt.
What are the up-front costs for a lease?
Unlike large down payments that are usually required on direct purchases, the down payment on a lease is typically the first and last monthly lease payments. These payments get applied as such to the lease payment schedule. In addition, a nominal documentation fee is required to cover costs relating to the preparation and delivery of lease documents and also the expense of filing UCC-1 financing statements in the appropriate state.
Are lease payments a tax write off?
Depending on the type of lease chosen, up to 100% of the lease payment may be deductible as a business expense. Preferred Lease recommends that you consult with your accountant on the specific applications to your business.
What is the interest rate?
Since this is a lease and not a loan, there is not an “interest rate” as typically related to financing. With a lease, the equipment is basically being rented with the payment amount determined by the equipment cost and the lease terms chosen.