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Frequently Asked Questions

What type of equipment can be financed?

The equipment categories are virtually unlimited, including software systems. We have trained Account Managers that can provide expert advice in your particular industry. New and used equipment is acceptable. And service contracts, training, installation and other non-equipment items that are a part of the equipment purchase can be included as well.

Can a lease be paid off in advance?

As with any finance purchase, it is not always in your best interest to pay off an account in the first few months. However, we do allow for early payoff at any given time without penalty. There are a few important notes however.

• Lease purchases are subject to the rule of the "sum of the remaining payments" with a discount that may range from 6% and up.
• Our exclusive Commercial Finance programs allows for early payoff using the rule of the "remaining principal balance". Your Personal Account Manager can help you determine what plan is best for you.

Is there a percentage rate and how is it determined?

No. A lease purchase is a rental purchase with the option to own. From an accounting standpoint, a lease purchase is set up quite differently than a traditional loan purchase. There are no amortization schedules nor is there the traditional compounding of interest associated with a loan. The yield on a lease purchase is determined more from a simple annual yield that is based upon a "rate factor" or cost per $1000.00 of funds borrowed.

How is sales tax and property tax managed?

• Property tax: On a lease purchase, just like any traditional finance arrangements, the equipment buyer is responsible for the property tax(consider a vehicle loan or a mortgage loan). On our Working Capital Loan and our Commercial Finance program, there is no property tax assessed.
• Sales tax: On a lease purchase, the sales tax is the responsibility of the business owner, unless otherwise indicated. The tax is based upon the usury and rate in the state where the equipment will be located.

Can equipment be upgraded, exchanged or added on to a lease?

Yes. Equipment can be exchanged for more advanced upgrades or additional equipment can be added on quite easily. Best of all, there are no applications to complete.

What is the minimum amount that can be financed and the maximum term?

Our transaction size starts at $1000.00 and goes up to unlimited amounts. And we offer generous terms from 12 months to 60 months and in some cases terms up to 72 months are available.

Is insurance required?

In the event the business owner does not have insurance, we can provide insurance coverage. If insurance coverage is available, our team of insurance specialists will assist with that. We simply will need the name and phone number of the insurance agency.

How long does it take to process an application?

Usually within one business day or less, we can have an application processed and approved.

Who should sign the equipment agreement paperwork?

The authorized owner(s) or officer(s) of the company should sign the paperwork. On rare occasions, where a cosigner might be needed, we would require the cosigner to sign along with the authorized owner(s) or officer(s).

What goes into making a credit decision?

There are three main factors that will influence the credit process: Time in business under current ownership, business credit profiling history and personal credit profiling history.

Credit decisions are not based upon one sole factor but a combination. So your chances of maintaining an approval under the Tri-Lease program tend to be greater than average

What is a UCC filing?

UCC stands for Uniform Commercial Code and most lending companies that provide collateral financing will place liens on the equipment until the account is paid in full. This protects you as a business owner and us as a lender as well.

When and how does the equipment dealer get paid?

We will submit funds directly to the equipment dealer once the equipment has been delivered and installed at the business owners place of business. We submit funds via overnight check service or via wire transfer and in some cases, where the equipment dealer requires pre-funding, we will submit the funds to the dealer in advance on behalf of the business owner. This helps protect the business owner's cash flow and the equipment dealer's cash flow.

What typically is due at document signing?

Traditionally only 1 or 2 payments are due at signing. This will typically be applied as a Security Deposit or as First and Last. Either way, the funds are applied to the term of the agreement or refunded to the business owner.

When are payments due each month?

The business owner is in complete control. At the time of final equipment confirmation by the business owner, the payment due date is determined. The business owner will set the due date.

Can start-up or tougher credit be submitted for approval?

Yes. Unlike many commercial lenders, we understand the importance of having the proper lending program in place. Because it is in our best interest to provide adequate funding for our entire customer base, we have available programs for not only, well established business owners, but for those companies that are just starting out or for those who perhaps have had credit challenges. Chances are, we have a program that will help.

How is the monthly payment determined?

There are several factors that play a role in determining exactly what the monthly payment will be for a customer? The most important factors would be credit profiling and length of time in business. The better the credit and the longer time in business(2 + years ideally) , the better rating structure and the lower the monthly payment. Tougher credit and newer businesses will often times require higher rating structures which translate to higher monthly payments.

Are expansions and new locations accepted?

Yes. Our existing business program will apply.