Frequently Asked Questions
- What is lease financing?
- Can I lease items for private use?
- What are the benefits to me?
- Why wouldn’t I get a loan instead?
- What do I need in order to qualify for a lease?
What is lease financing?
A lease is a contract between the owner of a specific asset (the lessor) and another party (the lessee) allowing the lessee to hire the asset. The lessor retains the right of ownership, but the lessee acquires the right to use the asset for a specific period of time in return for the payment of a rental.
More specifically, a finance lease is defined as an agreement to lease certain equipment for a fixed period of time (medium or long term) where the leasing company will not provide any service or maintenance, repair or insurance of the leased item.
Can I lease items for private use?
At this time, First Global Leasing only offers lease financing for commercial purposes.
What are the benefits to me?
- Tax savings
- Use the asset being leased as collateral
- Up to 100% financing
- Preservation of cash flow
- Prompt approval and transaction process
Why wouldn’t I get a loan instead? Don’t they have lower rates?
All businesses have different financial needs. The biggest advantage of lease financing is tax savings; lease payments are tax deductible, while only a portion of loan payments are deductible. A loan usually requires a downpayment and other items to be pledged as collateral. Under a lease, there is a [refundable] security deposit, and the asset leased is used as collateral.
Our rates are extremely competitive within the industry. We will work with you to personalize your financial plan, and assist in determining what is best for your business at that time.
What do I need in order to qualify for a lease?
Initially, we require 3 years audited financial statements, company profile and projected cash flow statements for at least one year. Upon review of these documents, we will advise the next steps. |
