Who can lease?
Any company, organization, association, or small business that has a need for equipment or assets for business or commercial use.
Who should sign the lease?
The lease should be signed by the owner of a sole proprietorship, an authorized officer of a corporation, or by the duly authorized partners of a partnership.
Who services or maintains the equipment?
The lessee is responsible for maintenance and receives the benefits of all “buyer” warranties.
What kind of equipment can I lease?
You can lease any business-related equipment! This can include but is not limited to the following: photo-audio-video, broadcast, general office equipment, telephone systems, hardware, software, computers systems, office furniture, work stations, specialty equipment, printing, bindery, machinery, titled vehicles, video production and post-production equipment, printing and pre-press equipment, computers networks, peripherals, and any other business related equipment.
Any capital assets needed for your commercial business…Chances are we can do it! We are also a source for many types of other equipment: vehicles, car lifts, signs, medical-dental, etc.
What are the End of Lease options at the end of the lease?
You have a few flexible options to choose from; you may purchase the equipment for its purchase option amount, renew the lease for a specified period of time, or return the equipment with no further obligation.
What lease end Purchase Options are available?
We offer flexible purchase options to meet your needs: $1.00 buyout purchase option (which is treated as a purchase), Fixed percentage purchase option (our most popular is 10%), and Fair Market Value (FMV) purchase option. The best option for you can be determined after a brief conversation with one of our account managers. See the link Lease End Options
What are the tax benefits associated with leasing?*
From the lessee’s viewpoint, you may be able to deduct the monthly lease payment as a business expense on your tax returns if you have an operating lease you might be able to deduct 100% of your lease payment. You should seek specific advice from your accountant. From the lessor perspective, unless you chose a $1 buyout option, the lessor holds legal title to the equipment and is entitled to any tax benefits associated with ownership.
What about insurance…is insurance required for the equipment that I am leasing?
For the protection of both the lessee (end user, who needs the equipment for their business operations) and the lessor, as owners of the equipment, there is the requirement that the equipment be insured. The lessor must ensure that if the equipment is destroyed or stolen, the lease will be paid off from the proceeds of the insurance policy. Lessee’s typically just add the equipment to their existing policy it is imperative that the lessor receives a copy of the insurance certificate which lists them as a loss payee.
What taxes am I responsible for?
A lessor remits applicable sales and use tax directly to your state’s department of revenue, and bills you accordingly. In addition to any local, county or state sales and use tax, you are responsible for paying your annual personal property taxes.
In most states and some local jurisdictions, the lessor is required to pay a use tax on each monthly payment. Since the lease payment was calculated in advance, and these rates change from time-to-time, this amount is billed separately. In certain states, the full amount of taxes is due at the inception of the lease, and the responsibility to do so falls on the Lessor. In these situations, the tax is added to the equipment cost to calculate the monthly payment.
Many states also charge an annual tax on tangible personal property. Since the Lessor is the legal owner of the equipment, they are required to pay this tax. (Our lease rate does not include these costs.) The Lessor passes this cost on to you in either a lump sum or spread over 12 monthly payments. Again, these taxes change periodically and are not included in the calculation for the bas monthly payment.
What financing alternatives are available?
We can customize your leasing plan to fit your business requirements, deferred payments, seasonal payments, and no down payments.
What vendor can I order from?
The vendor of your Choice! A benefit of leasing with MaxPro Leasing is that you can purchase equipment from any reputable vendor of your choice. Select your equipment and options, negotiate your best price and let us do the rest!
What if my equipment becomes obsolete?
In the event that you need to upgrade your equipment during the lease term, we will work with you to meet your goal. Obsolescence protection is one of the valuable features of leasing that saves the owner from the risk of owning obsolete equipment.
What effect does leasing have on the lessee’s bank line of credit?
Established bank lines are typically unaffected and can be better maintained for day-to-day working capital needs.
How long does it take to be approved?
Usually in less than 24 hours! Typically requests for up to $50,000 can be approved in a couple of hours from a simple one-page credit application. The process is simple, convenient, and effective so you can get your new equipment quickly. Applications can be made via phone, fax, or on-line over the secure server.
How long can I lease?
Typical leases range from 12 – 60 months depending upon the type of equipment.
Can I include services such as consulting, training, or services on my lease?
Yes. Leasing can include these services which are generally referred to as soft costs. Generally soft costs are limited to a certain percentage of the total lease amount.
Can I still lease equipment if I have already purchased it?
Yes. This is a great advantage and financing tool for your business to put your cash flow back where you need it most…in your business. Typically, you can do a Sales-leaseback for equipment that has been purchased in the last 30 days.
Are lease payments fixed or adjustable?
A lease payment is a predictable fixed rate. This means the payment is fixed for the desired lease term. Lease rates and terms are fixed unlike typical bank financing.
Does the equipment have to be new?
MaxPro Leasing can lease new or used equipment. Give us a call to discuss. 888-328-4319.
*Always consult with a licensed CPA for tax advice and tax laws in your state.