Frequently Asked Leasing Questions

WHAT IS A LEASE – A contract where one party (the lessor) gives another party (the lessee) the exclusive right to use and possess its equipment for a specific period of time in exchange for lease payments.

WHO ARE THE PARTIES TO A LEASE –The parties are:
The lessee -- the business owner that will lease the equipment.
The vendor -- the seller of the equipment.
The referral source -- you, the person who contacts the customer and initiates the lease.
The lessor -- Evans National Leasing, the company that funds the lease and collects payments from the lessee.

WHO LEASES – 80% of all businesses lease some or all of their equipment.

WHAT TYPES OF BUSINESSES CAN LEASE – Any business entities including sole proprietorship, partnership, farmer, corporation or limited liability corporation (LLC).

WHAT CAN BE LEASED – New or used equipment needed to operate a business or used to produce income.

WHAT ARE THE BENEFITS OF LEASING – A lease can provide 100% financing. Equipment costs, software, delivery, installation, and maintenance can be included in a lease. A one-page credit application can provide up to $75,000 in lease equipment. Lease payments are often fully deductible as an operating expense. Leases free up lines of credit to allow businesses to acquire equipment immediately.

WHY NOT TAKE OUT A BANK LOAN – Banks generally require an equity down payment of up to 25% of equipment cost. Banks will secure all assets of a company as collateral for the loan. Evans National Leasing only files liens on the equipment, not all the assets. Financial statements are required for all bank loans, in addition to the credit application. Evans National Leasing only requires a one-page credit application. Often, it can take up to two weeks for a bank to approve a loan request, but Evans National Leasing will typically approve a lease in 24 hours.

WHAT IS THE TERM OF A LEASE – Leases can be written for 12 to 60 months.

HOW DO I FIND LEASE PROSPECTS – Any business needs some type of equipment to operate. Your current business contacts are the first to prospect. Let them know you offer equipment leasing for any equipment they use. We suggest talking to the manufacturers or distributors of equipment in your area. Make them aware you can put a leasing program in place for their customers that would allow them to quote monthly payments rather than just the cost of the equipment. The lease option may make acquiring the equipment more affordable and reduce the need for dealer discounts.

WHAT DO I DO WHEN A CUSTOMER ASKS FOR A PAYMENT AMOUNT – Payments are based on the term of the lease and the cost of equipment. Call us with the information and we will provide lease quotes and term options for your customer.

WHO OWNS THE EQUIPMENT AT LEASE END – Most leases are written so that the customer owns the equipment at lease end. This lease option is known as a $1.00-out lease. However, the lessee may choose a fair market value (FMV) option buy-out, usually 10% of the original equipment cost. Under this option, the monthly payments are less but the lessee must pay the fair market value of the equipment at lease end to own, or they must return the equipment to Evans National Leasing.

HOW DO I START A LEASE – Have the prospective lessee complete our simple one-page application and fax, email, or mail it to Evans National Leasing, or call us and provide us with the lead and we will contact the lessee directly.

HOW LONG IS THE APPROVAL PROCESS – Evans National Leasing can give you a 24-hour turn around from receipt of completed credit application to approval of lease in most cases up to $75,000.

WHO HANDLES LEASE PROCESSING AND PAPERWORK – Once the credit application is received and approved, Evans National Leasing will send the lease to the customer, request invoices from the vendor, pay the vendor, pay you, bill and collect from the customer. We will do all the work once you have identified the need and sent the credit application.

WHAT IF I DON’T KNOW THE ANSWER TO A QUESTION – Just call or email
Evans National Leasing. One of our leasing specialists will be able to answer your questions.

GOOD PROSPECTING!