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Lease-Line Basics

Our commitment, is to arrange equipment lease financing, to the best of our ability,
for any business enterprise whether they qualify for conventional
or non-conventional equipment lease financing.

Our goal is your success!

Equipment Leasing:

An equipment lease, is an agreement under which the owner of the equipment, conveys to the user, the right to use the equipment, in return for a number of specified rentals, over an agreed upon time. The OWNER of the equipment is referred to as the “LESSOR”. The USER of the equipment is referred as the “LESSEE”. Leasing is a form of business financing. It is an additional source of credit that allows more efficient use of capital resources.

Equipment leasing may be the best method for acquiring modern technology. Entrepreneurs and corporations face increasing domestic and foreign competition. It is important that they are aware of the sources of financing that are available to support their operations and facilitate continued growth. A robust economy over the past few years has helped contribute to growth in the lease financing industry. Our Equipment Leasing service is available in all regions of the nation as well as all levels of business and government. Small and medium sized enterprises are our primary clients. They are the driving forces in our economy with 90% of them employing less than 10 people. Because of the lack of financial resources available to many small businesses, equipment lease financing is rapidly growing as an alternate source of credit. A properly structured equipment lease will allow the lessee the opportunity to operate equipment for its useful life, often for less than a loan payment, with the additional optional benefit of upgrading to a new model at the end of the lease. Of course, a lessee may trade-up to new equipment any time during the term of the lease. The lessee may also take the option of purchasing the piece of equipment he has leased.

Equipment lease financing is simple and convenient. You do the research and choose the make and model of equipment best suited for the business enterprise from the vendor/supplier of your choice, for the best cash deal. The potential Lessee then contacts Lease-Line, completes a credit application & provides supporting financial information as required. Upon lease credit approval and acceptance, Lease-Line will forward the lease contract for signatures. Once the lease contract and related documentation are returned to Lease-Line, a purchase order is issued to the vendor. The vendor then delivers the equipment to the lessees' place of business. After an independent auditor has confirmed delivery of the equipment, Lease-Line will pay the supplier and the lease commences.

Typically, a lease involves no money down, which basically results in 100% financing. The lease client doesn’t worry about paying Taxes up front either, since they are calculated on the rental. Two rentals and a signed lease contract seal the deal. On a five-year lease, that amounts to less than 5% investment. Effective costs compared with conventional bank financing are close. Those who can take advantage of the tax deductibility of the rentals can often increase expenses for tax purposes thereby reducing or deferring the payment of taxes.

Terms are tailored to the useful life of the equipment with a fixed rental throughout the term. Upgrade privileges are standard. Trade up value, or a purchase option can be predetermined.

Almost every enterprise whether it is a corporation, partnership, proprietorship, professional, charity, club, society, hospital, service, and every level of government is a potential lessee. Any Businesses that requires up to date technology to be competitive can be a lessee. Companies that can get past the fixation of ownership and realize it is the use, not ownership, of assets that generate income, are prime candidates for leasing. Many enterprises have leased some type of equipment …many more have not. There is no definition of a “typical” lessee.

There is seldom a single reason.  It depends very much on the situation of the enterprise.
Usually, the motivation to lease is a combination of the following factors.

Leasing provides up to 100% financing of equipment cost.
Working capital and credit lines remain free for other uses.
Reduced costs due to purchase option or fair market value (FMV) at end of lease.
After tax costs may be less expensive than other forms of financing.
Certainty of a fixed rental for the full term of the lease.
Pre-determined purchase option and renewal privileges.
Lease may qualify for off balance sheet accounting.
Hedge against inflation.
Leasing may not contravene loan covenants or capital investment restraints.
Simplified budgeting and accounting because of fixed rentals.
Lease rentals may be 100% deductible.
Quick and easy lease credit procedure and turn around time.
Reduced equipment risk.
Simplified lease documentation.
Equipment replacement program.
Operating budget may permit leasing when capital budget does not.
Modern equipment can be acquired immediately.
Taxes not required up front since taxes are calculated on the rental.
No down payment
Seasonal or reduced rental plans available.
Used or reconditioned equipment leasing is available.



The lessee simply returns the equipment at the end of the lease term.
The lessee may continue leasing if the equipment is still suitable or the lessee may be able to purchase the equipment at Fair Market Value (FMV). The Lease-Line GUARANTEES to give you at least 30 days prior notice of the purchase point.*

STRETCH LEASE: Our most popular.

The equipment lease contract is structured with a predetermined FMV purchase option point. If the lessee does not purchase the equipment at the option point, lessee continues leasing to the end of the term at which time he may continue leasing, return the equipment to the Lessor, or purchase the equipment at Fair Market Value.
The stretch lease is set up with a guaranteed predetermined purchase option, for example, 10% of the original equipment cost. If the lessee chooses NOT to take the purchase option at the purchase point, 36th month, the lease continues to the end of the lease term, 40 months. At this time the lessee may purchase the equipment for FMV (Fair Market Value), return the equipment or continue leasing. A typical three year lease with a 10% option = 40 month term. The stretch term is calculated by dividing the purchase option by the rental & rounding up to the next whole number.

This type of lease gives the lessee time plan for the next equipment acquisition.
Lease-Line GUARANTEES to give the lessee at least 30 days prior notice of the purchase point.*

$10.00 PURCHASE:

The equipment lease is structured to a bargain price at the end of the term. This method may be not considered a lease because $10.00 is a bargain price. However, many non-profit, public sector type clients, as well as regular businesses use it at their discretion. For many low priced pieces of leased equipment, this lease classification is not an issue. In most jurisdictions as long as the equipment is on a lease contract rentals can be treated as an expense. We do not give accounting advice.
Consult with your bookkeeper or accountant If you wish. Lease-Line GUARANTEES to give the lessee at least 30 days prior notice of the purchase point.*



Various payment options allow you to match scheduled payments with your cash flow. Semi annual     and annual payments are very popular in the agricultural industries.


Step leases allow lease payments to either increase (Step-Up) or decrease (Step-Down) over the     term of the lease to better meet unique cash flow situations. It provides an ideal match for revenue     growth and financing.


*Lease-Line GUARANTEES to remind the lessee when the purchase option becomes available. It is the responsibility of lessee to advise us of any change of address or phone numbers during the term of the lease.


If the Lessee ignores or does not buy the purchase option price or does not return the equipment, the lessor has the right to continue to collect lease rentals. This applies to all types of leases.