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Why
lease?
Leasing can help your company's financial picture by
matching the terms of the lease with the useful life of
the equipment. It can also provide 100% financing which
in turn enhances your company's financial position.
Leasing can require less in capital dollars than any
other method of financing and saves your cash and other
established credit lines for more profitable uses within
your business. |
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Why
lease with NLFC?
Many solid reasons including faster turnaround than most
banks and is an additional credit source for you! A
significant percentage of our business is with repeat
customers, some of which have 30+ leases with NLFC over
the years. Leasing or financing is available for
businesses of every size including public corporations,
municipalities, local and
federal government agencies and not-for-profit
institutions. Consistent ownership that is steadfast in
its commitment to integrity, honesty and the best
service in the industry. Financial strength and
performance that have earned Dun and Bradstreet's
highest 3A1 credit rating. Recipient of the Better
Business Bureau's highest Award
for business ethics. And peace of mind knowing that you
are working with NLFC - one of the oldest
continually-owned, privately held leasing and finance
companies in America, if not the oldest. |
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How
does the leasing process work?
1)
You decide the equipment or titled vehicle needed and
the vendor.
2) A one-page application is completed and submitted
either by phone directly with an NLFC representative, by
fax, on-line or snail mail.
3) The application is
processed and a decision quickly rendered.
4) Terms of the lease are agreed upon.
5) Lease is signed either in person with an NLFC
representative if local, or sent by overnight courier to
clients in states other than New York or Pennsylvania.
6) Completed documents and deposit are received by NLFC
and reviewed for accuracy.
7) NLFC purchase order is promptly sent to the vendor
authorizing delivery of the equipment or titled vehicle
selected.
8) NLFC verifies delivery with each client, pays the
vendor invoice and the agreement commences. See
Vendor Testimonials and
Lessee Testimonials.
REQUIREMENTS: For clients in business
3 - 5 years, only the completed
credit application and bank reference is generally
required for amounts up to $100,000.00. If in business
over 5 years and strongly D & B rated, just application
and bank reference required to $400,000.00. Publicly
traded companies applying for up to $750,000 just submit
last 2 years annual reports. |
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What
interest rate am I paying?
There
is no true interest rate attached to a lease since it is
basically considered a rental agreement for tax
purposes. A "factor" is used in calculating the lease
payment and may vary because it is based on the
equipment cost, term, buyout option and credit criteria
of each customer. Overall however, leasing offers some
the most competitive financing available. In some
instances, when lease tax savings are considered the
interest rate can even be negative -- meaning your tax
savings are greater than interest paid.
See Example |
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Are
my monthly payments tax deductible?
Unlike borrowed funds, lease rental payments are normally treated
as a business expense that comes out of your pre-tax income
instead of after-tax profits. This means that your lease
payments can be tax deductible as a business expense.
As individual situations can and do vary, NLFC suggests checking with your tax consultant to get the exact benefits
of your equipment lease. |
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What
are the end of the lease options?
This
will depend on the type of Purchase Option you chose at
lease inception (One dollar option, 10% option or Fair Market Value
option FMV). If
you chose a $1.00 then $1.00 is what you pay to own the
equipment, however payments may not be tax deductible.
If a 10% purchase option was chosen, your purchase price
is equal to 10% of the original equipment cost and
payments fully tax deductible. If you chose a Fair
Market Value option, you can either return the equipment
to NLFC, purchase for the current appraised value or
renew your lease for a new term and a payment that is
usually lower. As with the 10% option lease payments are
fully tax deductible. NOTE: 10% option leases will have
lower monthly payments than a $1.00 option lease and a FMV lease will usually have lower payments than a 10%
option lease. |
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May
I close out the lease early?
Yes, and you could realize some savings. With NLFC a discount
may apply based on factors such as lease balance at time
of closeout, how you have handled your lease and whether
or not you are entering a new lease with us.
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More
Questions?
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