Frequently Asked Questions
WHAT IS LEASING?
A flexible form of financing which allows companies to purchase the equipment of their choice and pay for it over a period of one to seven years. 90% of US companies lease some or all of their equipment, and over $700 billion in equipment is acquired through leasing annually.
Leasing offers several advantages over bank financing and paying cash.
- Improved cash flow: No large initial cash outlay is required, and leasing offers lower monthly payments than similar-term debt financing
- 100%, fixed rate financing: Your monthly payment will not change during the term of the lease as market interest rates change. This is particularly attractive in today’s uncertain interest rate environment
- Simple Documentation: Leases are approved without the onerous documentation requirements of bank loans, and the lease documents themselves are few, and easy to understand
- Preserves bank lines and working capital : Leasing leaves your company’s bank lines of credit intact, and allows you to use working capital to grow your business
- Tax Advantages: Lease payments may be deducted as an operating cost. Because the lease term is frequently shorter than the equipment’s depreciable life, you enjoy a more rapid write-off
- Flexibility:Virtually any type of equipment can be financed with a lease, and all costs of shipping, installation, training and warranties can be included.
Purchases of equipment from more than one vendor can be combined on the same lease and additional equipment can be added at any time during the lease term
CAN A LEASE BE CANCELED OR PAID OFF EARLY?
Empire’s leases are non-cancelable, but equipment may be traded in for new, leased equipment before the end of the initial term. Empire also offers the option for early buy-out during the lease term without pre-payment penalty
ARE THERE ANY HIDDEN CHARGES?
No. Empire does not charge interim rent, application fees or maintenance fees. Other than the monthly lease payment, the only charge is a one-time documentation fee associated with the filing of forms that may be required in your company’s state of operation. This fee is normally under $200.
WHAT’S THE INTEREST RATE?
Because a lease is not the same as a loan, there is no “interest rate” as we usually think of one. By leasing, you are making a monthly payment determined by the type of leasing plan you choose, the term of the lease, and the cost of equipment. Leasing also offers flexibility, convenience, and tax advantages that a bank loan does not.
HOW DO I GET STARTED?
Simply fill out our one-page Empire Express Application and send it in. The application provides us with all of the information necessary to approve most companies for purchases of up to $150,000. (Larger approvals will require the submission of corporate financial statements or tax returns). You will be notified of credit approval within 24 hours, and we will contact you to discuss which lease best suits your company. Empire will then contact the equipment vendor, issue a Purchase Order on your behalf, and e-mail or overnight the lease to you for signature.