Frequently Asked Questions
Who do you provide leases for?
We provide leasing solutions to businesses and organizations of all sizes and level of experience.
Should I lease lease or buy?
There are a number of options that make leasing an attractive option for many businesses. Leasing…
– offers fixed regular payments over a set term.
– provides financing for 100% of the equipment cost.
– allows people and businesses to pay for equipment while it is used to generate income.
– conserves working capital, lines of credit and eliminates other costly forms of debt.
What is the process for leasing equipment?
Elm Financial first reviews the credit information provided on your lease application. Upon approval, the lease agreement is prepared. Once the equipment is delivered, Elm Financial then pays the vendor and begins billing you according to the agreed lease payment terms and schedule.
Is a down payment required?
How are lease payments determined?
The monthly payment is based on the term of the lease, cost of the equipment and the type of leasing plan you choose. Elm Financial offers many lease agreement options for your convenience.
What factors are used to determine credit worthiness?
Your credit worthiness is based on a number of factors such as:
– credit bureau rating.
– length of time in business.
– financing conditions.
– references from financial institutions.
– trade references.
– bank reference.
– financial statements may be required.
Can the lease be cancelled?
No, but you can trade in your equipment and lease new equipment before the expiration of the term. Elm Financial also offers a special rate for those who choose to buy out their lease before the end of leasing term.
Can I purchase the equipment at the end of the lease?
Yes. The type of lease plan yopu choose will determine what your buy-out options are.
What about GST/PST/HST?
The GST and PST or HST(where applicable) are calculated on a monthly basis based on your lease payment. This way, you are only financing the actual cost of the equipment; you are not financing the taxes.
Who should sign the lease?
For a business lease, it must be signed by an authorized officer of the corporation, by one of the partners in a partnership, or by the owner of a sole proprietorship.
Who services or maintains the equipment?
As the lessee, you receive all the benefits of “buyer” warranties/guarantees and are therefore, responsible for the care and maintenance of the equipment.
What about tax benefits? How do I account for lease payments?
Although most lease payments are fully tax deductible, you should seek the advice of your accountant or bookkeeper to determine the best way for tax purposes.
What effect does leasing have on my bank line of credit?
Established bank lines of credit are unaffected therefore, can be better-maintained and utilized for day-to-day working capital needs.
For more information call us today. (705) 671-2911.