FREQUENTLY ASKED QUESTIONS
Q: Who is Eligible for Commercial Capital Leasing?
A: Any business, individual, nonprofit group or association that plans to use the leased equipment for a commercial use can take advantage of commercial financing.
Q: What Types of Equipment can be Financed?
A: Any equipment needed for a business is eligible for commercial financing. Capital equipment that is commonly leased includes office equipment, such as phone systems, computer networking equipment, copiers and furniture; construction equipment; reprographics equipment; medical equipment; and manufacturing equipment.
Commercial financing also can factor in the costs of consultation and installation.
Q: Why do Businesses Choose Commercial Financing?
A: Commercial financing eases cash flow for businesses and is a popular choice for small and medium size businesses.
With commercial financing, monthly payments are tailored to a business’s individual needs. When businesses lease, they keep other lines of credit free.Capital equipment leasing helps businesses keep their equipment up to date without having to risk purchasing equipment that may soon become obsolete.
Capital equipment leasing also provides tax benefits for many businesses.
Q: How big Will the Down Payment be?
A: With commercial financing, there is no down payment. Generally, the money that is put down will be the amount of a monthly payment, and that money will be applied to the terms of the lease.
Q: What Will the Interest be?
A: Capital financing breaks the cost of purchasing equipment into regular monthly payments. Payments are not broken down into principle and interest.
Q: Can more Equipment from Different Vendors be Covered Under the Same Lease Agreement?
A: If a business is making multiple purchases within the same time frame, those purchases can be consolidated into one commercial lease with one monthly payment.
Q: Can Equipment be Added to a Lease?
A: Yes. New equipment can be added to a lease at any time.
Q: Can a Lease be Canceled?
A: No, commercial leases cannot be canceled. However, leases can be paid off early without penalty, or equipment can be upgraded.
Q: What Types of Leases does Commercial Capital Provide?
A: Commercial Capital provides customers with multiple lease options, including true leases or operating leases, finance leases or capital leases, skip leases and master leases.
Q: What Lease Terms Does Commercial Capital Offer?
A: Commercial Capital offers a range of lease terms, allowing businesses to choose a lease financing term that best suits their needs. Common lease terms include 24-month financing, 36-month financing, 48-month financing and 60-month financing.
Q: What Happens at the End of the Lease?
A: At the end of the lease financing agreement, the leased equipment can be returned or purchased, or the lease can be extended.
If the leasing business chooses to purchase the equipment, the businesses will be able to purchase the equipment for fair market value, for a percentage of the equipment’s cost or for a set rate, such as through a $1 buyout, or abandonment lease. The purchase options are included in the terms of the lease.
Q: Where Does Commercial Capital Provide Leasing?
A: Commercial Capital, based in Kansas City, Mo., serves businesses nationwide, but primarily serves businesses and vendors in the Midwest, from Illinois to Colorado and from Texas to North Dakota.
Q: How Long Does the commercial leasing process take?
A: Commercial Capital offers a quick and efficient application process that usually lasts less than three hours.
To obtain a lease, an application is filled out, and then other financial information, such as tax returns or financial statements, may be requested.
VENDOR FREQUENTLY ASKED QUESTIONS
When you offer a leasing service through Commercial Capital, your customers can break their purchase down into a affordable, monthly payments that fit their budgets.That, along with a fast and easy leasing application, can help you to close the deal quickly.
Offering capital equipment leasing also can help you to up-sell your customers. Upgrade your customer to a more expensive line or add accessories for only a small increase in monthly payments.
Q: Will my Staff Have to Handle Extensive Paperwork & Quote Interest Rates?
A: No. Commercial Capital leasing service offers full-service relations for equipment vendors. Our team will offer quotes, assist with paperwork and accompany your sales team on calls so your team can focus on selling, not on details of the capital finance lease.
Our team is available over the phone to walk your staff through paperwork or provide remote quotes, such as when your staff is at trade shows.
Q: Is There a Minimum or Maximum Lease Amount?
A: We would like to say that we have no minimum lease amount, but the reality is anything less than $2,000 for a new lease is not advantageous to Commercial Capital or the lessee.
However, Commercial Capital will consider creating a co-terminus leasing service, adding a smaller piece of equipment to an existing lease so that both leased items mature at the same time. Commercial Capital does not have a maximum lease amount.
Q: Do you Lease Used Equipment?
A: Yes, Commercial Capital is happy to offer a used equipment leasing service.
Q: Do you Allow Multiple Equipment Vendors on the Same Lease?
A: Yes, Commercial Capital is able to create a lease that includes multiple equipment vendors.
Q: Can Service, Training, Installation, and Freight be Included in a Lease?
A: Yes, Commercial Capital can include the costs of service, training, installation and freight in a lease, as long as they are a set amounts that do not exceed 20 percent of the total leased amount.
Q: How is Sales Tax Handled? Do I quote my Price with or without Sales Tax?
A: Most equipment vendors do not include sales tax in the price. Rather, they will quote the cost of the sales equipment “plus tax.”
Q: When Will I get Paid on the Deal?
A: Commercial Capital will send you your payment quickly, as soon as the equipment is delivered.
Q: What if I Require a Prepayment Before the Equipment is Ordered?
A: Commercial Capital can offer you a down payment, as long as the customer agrees to the terms. Also, the leasing service must be activated at the time of payment. The remainder of the equipment cost is paid after the equipment is delivered.
Q: Can we add a Service Contract to the Lease?
A: Yes, Commercial Capital can add service costs to a capital finance lease, such as facility management, cost-per-copy and print-for-pay leases. We simply add the additional cost to the monthly capital equipment payment and pass that portion of the payment back to the equipment vendors.
This offers a convenience factor for customer — They only have to write one check for the capital equipment leasing service. The service contract in the lease does need to be a set amount, and overages must be billed by the equipment vendors to the customer.
Q: Can I Upgrade a Customer, Before the Capital Equipment Lease Matures?
A: Yes, as long as you purchase or release the equipment at or above the remaining balance.
Q: How Else can Commercial Capital Help me Improve my Sales?
A: Commercial Capital’s marketing partnership program can help you reach a broader audience.
Our team will advertise your specials and lease financing options through direct-mail fliers and postcards. We can assist you on site or over the phone at trade shows to help your team close deals on the spot. We also can create private label lease financing deals and marketing materials that make you stand out from your competitors.