Top 10 Equipment Lease Finance Questions
(3 min read)
Have questions about equipment leasing and financing? Here are ten questions business owners often ask us.
1. How does equipment leasing work?
You choose the equipment and vendor and negotiate the purchase price. Arbutus then purchases the equipment you’ve chosen and negotiated. In return, you make payments to Arbutus over an agreed upon term for the use of that equipment. The Lessee (that’s you) have options at the end of the lease to purchase the equipment or return the equipment.
2. I am interested in a piece of used equipment; can you help me with that?
Absolutely. We are one of the few leasing companies that will provide financing on used equipment.
3. How do I know I will qualify?
Once we’ve received your credit application we or your broker will call you to let you know. We won’t leave you hanging.
4. How much do I have to pay upfront?
The down payment is negotiable but usually will include a first and last payment.
5. I have equipment. I need cash. How can you help me with that?
Yes, we can. If you own your own equipment you may qualify for a sale leaseback. Give us a call to discuss your situation – helping owner operators deal with last minute expenses is what we do best.
6. What are my options when my lease is up?
Again, this is negotiated at the beginning of the lease. Each situation is different – you may want a minimal end of lease payment option or a larger one with smaller monthly payments. Trading up is also an option.
7. My credit is not the best, can I still qualify for a lease?
Everybody’s situation is different. We look at your company history, personal assets and other factors beyond just your credit rating. We’ll talk to you about your situation and work toward a solution so you get the funds you need.
8. How long will it take to approve my equipment lease application?
If we get the information we need, we can usually approve financing within 4 business hours. If a quick answer is important to you, it’s important to us.
9. My revenue is impacted seasonally. Can I get a payment plan that provides some flexibility in months when sales are lower?
Our lease agreements call for monthly payments but call us to discuss your situation and to discuss options that may provide relief during your off season.
10. Which is better, leasing or buying?
This decision is largely dependent on your cash flow. We want you to make the best decision for your business and we will be pleased to discuss your options.