Equipment Financing Questions
How long will the equipment financing process take?
Requests up to $75,000 will be approved within 1-2 workdays after receiving a Business Financing Application along with supporting documents. Amounts over $75K will take 2-3 additional days depending on the complexity of the equipment leasing request. Upon approval, an equipment financing contract is sent immediately to the customer. Once the documents are signed, a Purchase Order is sent to the equipment vendor. The finance begins once the customer has signed an “acceptance” for the equipment received.
How can I speed up the business loan process?
Have all your financial documents in order, scanned into PDF files and easily accessible. This includes 2 years of tax returns (personal & business), 3 months current bank statements, current balance sheet, income statement and Personal Financial Statement. Some commercial lending or equipment financing programs require additional information.
Do you offer business loans on used equipment as well?
Yes, we finance all types of used equipment. The used equipment has to be purchased from a commercial vendor and not a private party. Typically,
used equipment can be financed up to 36 months.
What happens at the end of the equipment lease term?
There are a variety of end of term options available depending on the type of finance you have. These include Fair Market Value (FMV or Operating lease), $1.00 Buyout (Equipment Lease) and other Fixed Purchase Options (10% or 20% Buyout) or full payout business loan.
What is the equipment lease or business lending interest rate?
Although an equipment lease is not a principal and interest business loan, rates or the money factors are based on credit history, time in business, equipment cost, lease term and structure. As with commercial loans, the rate will directly depend on the risk, which is assessed to your particular business status. The bottom line: riskier business models or individuals pay higher rates. All business equipment financing and business loans are based on risk.
Will my equipment lease payments be tax deductible?
The IRS will generally allow you to write off 100% of your equipment leasing payment if the lease structure is within their guidelines. We recommend consulting with your tax advisor.
Are the equipment leasing payments fixed for the term?
Your equipment leasing and commercial loan payments are fixed throughout the term. No balloon payments are part of a standard business financing program. You can select monthly, quarterly and semi-annual payments to
fit your budget.
What is the minimum dollar amount for equipment leasing?
$15,000 is our minimum amount for a business financing or commercial lending program. The minimum for "Green" projects including LED lighting and solar energy systems is $20,000. The upper limit for equipment financing or commercial loans can include multi-million dollar projects.
How long do you have to be in business for an equipment lease?
First U.S. Finance has asset-based equipment financing programs for
start-up companies. Standard equipment leasing or commercial lending programs are available for companies that have been in business for a minimum of two years. However, most of our preferred programs require a minimum of five years time in business.
Is a deposit required for equipment financing or business lending?
Equipment leasing provides 100% financing. Although custom payment plans are available, First U.S. Finance typically requires two payments in advance with documentation fees when documents are signed. All our equipment leasing and business loan programs have a similar fee structure.
Does it matter who organizes my equipment financing program?
Yes! Some finance agents work specifically for one lender, which limits their access to competitive capital. The same is true of some vendors, which offer equipment leasing to their customers; they deal with one equipment leasing or commercial lending bank that can limit a customer’s options.
As an independent equipment leasing company, First U.S. Finance contracts with a diverse group of national lenders and private investor groups, which means each finance we structure is competitive in the commercial lending market.
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