Services

Since 1976

General Leasing & Financial Services

a division of WRG Financial Services Ltd.

Frequently Asked Questions

Why Lease?
Leasing has become one of the most widely used methods of financing for equipment and machinery acquisitions by businesses. In fact, according to the United States Equipment Leasing Association (ELA), 80% of all businesses use leasing to acquire some or all of the machinery and equipment they use to run their business. Here are just some of the reasons why:

Capital Preservation

Credit Preservation

Easier Budgeting

Financial Efficiency

Flexibility

Tax Deferral

What types of assets can be leased?
General Leasing can provide financing for virtually all types of equipment, machinery and other capital assets. We can even arrange leases for computer software.

Who can lease?
General Leasing works with virtually any type of business entity, including:

Established businesses of all types

New businesses and Start-ups

All Industrial and Manufacturing sectors

Institutions and Non-Profit Organizations

Universities and School Boards

All levels of Government

Hospitals, Medical and Dental practices and clinics

Professionals and Consultants

What are the rates?
General Leasing continually strives to provide the most competitive lease rates available. Rates are dependent upon the customer's credit profile, length of time in business and industry, as well as on the type of equipment, size of transaction and term/structure of the lease.

Can a lease be cancelled?
Generally speaking, no. The lease is a legally binding contract. It can not be cancelled by the Lessor or the customer. Most leases have provisions whereby the customer can trade-in the equipment, or can pre-pay the lease. Some of the leases arranged by General Leasing are structured so as to be open without penalty after a specific number of months have elapsed.

Who is responsible for maintenance and insurance?
The customer is responsible for maintaining and insuring the equipment.

Is a down payment required?
Generally, for customers who meet the minimum credit and length of time in business requirements, no down payment is needed. On execution of the lease, an amount equal to first and last month's lease payment is all that is required.

Are personal guarantees required?
Provided that the business meets certain minimum credit requirements, no personal guarantees are required. In some instances another related business can act as a guarantor for a lease, rather than having owners or partners act as a guarantor.

What are my options at end of lease?
Lessee has an option of continuing to lease, purchasing the equipment, or returning it to the Leasing Company.
End of term options are decided by the customer and structured into the lease prior to execution.

What if the equipment I receive has problems?
You will be contacted when your shipment arrives to ensure you receive exactly what you ordered. After your initial receipt of the equipment, your vendor will troubleshoot problems or replace equipment as defined in your warranty. Lessee receives benefits of all "buyer" warranties and is responsible for maintenance.

Who owns leased equipment?
The Leasing Company, as Lessor, is the owner of leased equipment until you choose to purchase the equipment at end of lease.

What are the Differences Between a Lease and a Loan?

Loan	Lease
A loan requires the end user to invest a down payment in the equipment. The loan finances the remaining amount.	A lease requires no down payment and finances only the value of the equipment expected to be depleted during the lease term. The lessee usually has an option to buy the equipment for its remaining value at the end of the lease.
A loan usually requires the borrower to pledge other assets for collateral.	The leased equipment itself is usually all that is needed to secure a lease transaction.
A loan usually requires two expenditures during the first payment period; a down payment at the beginning and a loan payment at the end.	A lease requires only a lease payment at the beginning of the first payment period which is usually much lower than the down payment.
The end user bears all the risk of equipment devaluation because of new technology.	The end user transfers all risk of obsolescence to the lessors as there is no obligation to own equipment at the end of the lease.
End users may claim a tax deduction for a portion of the loan payment as interest and for depreciation, which is tied to IRS depreciation schedules.	When leases are structured as true leases, the end user may claim the entire lease payment as a tax deduction. The equipment write-off is tied to the lease term, which can be shorter than IRS depreciation schedules, resulting in larger tax deductions each year. The deduction is also the same every year, which simplifies budgeting (equipment financed with a conditional sale lease is treated the same as owned equipment.)
Financial Accounting Standards require owned equipment to appear as an asset with a corresponding liability on the balance sheet.	Leased assets are expensed when the lease is an operating lease. Such assets do not appear on the balance sheet, which can improve financial ratios.
A larger portion of the financial obligation is paid in today's more expensive dollars.	More of the cash flow, especially the option to purchase the equipment, occurs later in the lease term when inflation makes dollars cheaper.

Questions???

The best way to get answers to your questions is to call us. We offer FREE, NO OBLIGATION consultation to determine if our services can help your company grow and prosper..

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Call us today for a no obligation, consultation 905.689.1173

Leasing