Q & AQ. What is a lease?
An agreement in which the lessor (Atlantic Business Credit) conveys the use of an asset to the lessee (the customer) for a set amount of time for a fixed monthly payment.Q. What are the options at the end of the term?
The lessee can renew the lease, return the equipment or purchase the equipment according to the type of lease entered into.Q. What purchase options are available at the end of the term?
According to the type of lease written, the lessee can purchase the equipment for $101, for 10% of the original purchase price or for Fair Market Value. Most customers choose the $101 purchase option.Q. What type of equipment can be leased?
Atlantic Business Credit will lease almost any equipment that is used for business.Q. Who can apply for a lease?
Leases are written to commercial customers only. This includes but is not limited to corporations, general partnerships, limited partnerships, LLC's, and proprietorships.Q. What terms are available?
Generally 18- 60 month terms. Many customers match the term of the lease to the useful life of the equipment.Q. Is the monthly payment fixed over the term of the lease?
Yes. Lease payments do not fluctuate with interest rates or inflation.Q. Who selects the equipment?
The lessee can select from reputable vendors whatever make/model is suitable to their needs. Upon selection, Atlantic Business Credit will purchase the equipment from the Vendor and lease the equipment back to the lessee according to the terms and conditions of the lease.Q. What about insurance and taxes?
The Lessee is responsible to keep the equipment insured in the event of loss because of fire or theft etc. The Lessee is also responsible to pay any applicable taxes (ie sales tax, property tax) which will depend on the laws of state in which the equipment is located.Q. Can I add additional equipment to the lease at any time?
Yes. We can amend the lease to include additional equipment and then adjust the payment as needed for the remainder of the term.Q. How long does the credit approval process take?
Typically 24-48 hours after receiving a complete credit package.Q. Is there an early payoff penalty?
No. The Lessee can pay off the equipment at any time.Q. What are the steps to process a lease application?
- Submit the credit application.
- Select the equipment and vendor.
- Atlantic Business Credit will document the lease.
- Once documentation is completed, Atlantic Business Credit pays the Vendor and the lease begins.
Atlantic Business Credit does not charge an application fee. We do however charge a nominal fee to compensate us for processing the lease documents and to reimburse us for the fees incurred.
*Answers to these questions are in general terms, actual conditions may vary according to individual circumstances. Be sure to consult your attorney and or accounting firm.