FAQ's

Question 1

How much does leasing cost?

Accepted Answer

Lease financing is a very affordable option when it comes to equipment acquisitions. Your monthly payment is determined by the options you choose and can be tailored to fit your cash flow needs. If you want to know how leasing affects your bottom line when compared to other options, consider the benefits of Leasing vs. Borrowing vs. Cash.

Question 2

How is the monthly payment calculated?

Accepted Answer

Monthly lease payments are determined based on a Lease Rate Factor: a periodic rental payment to a Lessor for the use of assets. The Lease Rate Factor multiplied by the Equipment Cost is equal to the amount of your monthly lease payment.

Question 3

How do I account for the lease in my company financials?

Accepted Answer

The lease options you choose up front may have tax and accounting implications. Talk to one of our expert leasing consultants at 1-800-293-1119 or speak with your accountant to determine the best options for you and your business.

Question 4

What affect does leasing have on my bank line of credit?

Accepted Answer

Title of the asset remains with the Lessor so no money is borrowed when leasing; you just make monthly rental payments, and as such, your bank line of credit is unaffected.

Question 5

How will I be billed?

Accepted Answer

You will be billed by monthly debit to your bank account for each payment.

Question 6

How much do I have to pay upfront?

Accepted Answer

A typical lease includes first and last lease payment in advance. Other options are available upon request. Please talk to one of our expert leasing consultants at 1-800-293-1119 or e-mail us for more details.

Question 7

Will I be charged tax on my lease?

Accepted Answer

The applicable taxes are added to the monthly lease payment and paid over the term of the lease.

Question 8

Who can lease?

Accepted Answer

Easylease provides leasing services for any company, organization, association or professional.

Question 9

If my company is new, can I still lease?

Accepted Answer

Easylease deals with a select group of funding partners that specialize in relatively new businesses and start-ups, and as such, we are often able to approve companies that have been in business for less than one year, pending credit approval.

Question 10

What factors are used to determine credit worthiness?

Accepted Answer

Some of the information we may collect to put a proper credit package together include; Commercial Credit Application that shows company registration type, time in business, address etc. We may acquire a credit bureau rating such as Equifax, TransUnion or PayNet that show payment history, number of trades, high credit limits, bank lines etc. Bank Statements- only required on occasion Personal Net Worth Statements – only required on occasion Two years Financial Statements plus Interims – only required over certain dollar amounts Principal Information – only required on occasion Vendor / Supplier Information Asset details Any other supporting documentation that we may need to obtain an approval.

Question 11

What has to happen before I receive the equipment?

Accepted Answer

Step one: Complete our credit application and return. Easylease will review and obtain an approval. Step Two: Easylease will obtain the suppliers equipment quotation and draft up the lease documents for you to sign. Step THREE: Sign and send back the lease documents. Upon review we will instruct the supplier to release the equipment.

Question 12

When does the lease start?

Accepted Answer

Depending on your requirements, the lease may start at the following intervals: Upon signing of the lease agreement, if an execution agreement is signed and the supplier requires pre-payment. When the equipment is delivered and installed, depending on the underwriter. On the first of the month following installation. A per diem rental payment may be charged up until the first of the month.

Question 13

What are my options at end of lease?

Accepted Answer

There are several options for the lessee at the end of the lease term: Continuing to lease, Purchasing the equipment, Returning the equipment to the Leasing Company. Should you choose to purchase the equipment, the following options are available depending on what was agreed to on signing: Fair Market Value (FMV), Stretch lease allows for early purchase option set at a certain percentage, $10 buy out price, where you pay just $10 to purchase the equipment. End of term options are decided by you, the customer, and structured into the lease prior to execution. Once the lease has commenced, the purchase options cannot be changed.

Question 14

What if the equipment I receive has problems?

Accepted Answer

When your shipment arrives, you will be contacted to ensure that you receive exactly what you have ordered and in proper condition. After your initial receipt of the equipment, your vendor will work with you to troubleshoot problems or replace equipment as defined in your warranty. As the lessee, you will receive the benefits of all buyer warranties, as well as the responsibility for maintenance. It is not the responsibility of leasing company.

Question 15

Who owns leased equipment?

Accepted Answer

The Leasing Company, as the lessor, is the owner of leased equipment until you choose to purchase the equipment at end of lease.

Question 16

May I end my lease early?

Accepted Answer

If you choose to end the lease early, you may. However, it is only under rare circumstances that terminating a lease during its term is an advisable option. The cost to terminate a lease is based on the balance of payments, plus purchase option plus tax, and any payment in arrears. Easylease makes every effort to maximize your lease termination options with flexible equipment upgrade programs.

Question 17

Can equipment be purchased at the end of the lease?

Accepted Answer

Easylease offers lessees the option to purchase the equipment at the end of the lease. Should you choose to purchase the equipment, the following options exist for the purchase price: Fair Market Value (FMV), Stretch lease allows for early purchase option set at a certain percentage, $10 buy out price, where you pay just $10 to purchase the equipment. End of term options are decided by you, the customer, and structured in to the lease prior to execution.

Question 18

Who services/maintains equipment?

Accepted Answer

Your vendor or supplier will service and maintain the leased equipment. It is not the responsibility of leasing company.

Question 19

Is insurance required on the leased equipment?

Accepted Answer

In order to protect both the leasing company and lessee, insurance is required on all leased equipment. In some situations, insurance protection can be included with your lease for a nominal fee.

Question 20

If I have questions during the term of my lease or loan, whom do I contact?

Accepted Answer

Contact 1-800-293-1119 or email CustomerService@easylease.ca

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