You can expect to go through the following steps when applying for a lease:
You fill out an application for an equipment lease. Make sure you have financial data for your business and its owners on hand, as this may be required either before or after you submit your application.
The lessor evaluates your application and informs you of the outcome. This usually occurs within 24 to 48 hours of the application being submitted. For applications ranging from $10,000 to $100,000, some lessors may not require financials or a business plan. Expect to provide complete financials and a business plan for financing over $100,000.
You must review and finalize the lease structure, including monthly payments and the fixed APR, once you receive approval. The documents will then be signed and resubmitted to the lessor, usually along with the first payment.
You will be notified that the lease is in effect and that you are free to accept delivery of the equipment and begin any necessary training once the lessor has received and accepted the signed documents and first payment.
Funds are transferred directly to you or the manufacturer from whom you are purchasing within 24 to 48 hours.
Responsibilities of lessee
Additional responsibilities can lead to additional costs in addition to your monthly lease payment. The items listed below are typical examples.
Liability insurance: Annual liability insurance estimates range from $200 to $2,200, with many businesses reporting costs of $1,000 or less.
Extraneous expenses: Depending on the terms of your lease, you may be responsible for some maintenance and repairs. Any legal fees, fines, or certification expenses are examples of extraneous costs.
Shipping costs: This includes transportation and shipping costs to return the equipment.
Fees for additional services: Read your contract thoroughly. Fees for a one-time documentation fee (which can be as much as $250) or late payment fees (which range from $25 to 15% of the amount owed) can be added.