Most Asked Questions

WHY LEASE?

Leasing can help your company's financial picture by matching the terms of the lease with the useful life of the equipment, and also providing 100% financing which in turn enhances your company's financial position. Leasing requires less in capital dollars than any other method of financing.

HOW DOES THE LEASING PROCESS WORK?

The Customer submits a one-page application by phone, fax, e-mail or on-line via our website. Our credit department then processes the application and a decision is rendered within a 4 to 72 hour period. The customer is advised of the term and monthly payment. Then our documentation department generates the paperwork and sends it to the customer by e-mail, overnight delivery, regular mail or fax. Upon receipt of the original signed lease, we then fax or email an invoice request to the vendor. Upon receipt of the invoice and delivery of the equipment to the customer, verbal confirmation is completed with the customer and then the vendor will receive payment within a 24-48 hr time frame. Special vendor payment terms available upon request & approval.

WHAT INTEREST RATE AM I PAYING?

Because a lease is considered a rental agreement, there is no true interest rate attached to a lease transaction. In the leasing industry a "factor" is used to calculate the monthly payment, which can vary based upon the equipment cost, term, buyout option, time in business or your financial condition.

ARE MY MONTHLY PAYMENTS TAX DEDUCTIBLE?

Unlike borrowed funds, lease payments are normally treated as a business expense that comes out of your pre-tax income instead of your after-tax profits. This means that your lease payments may be tax deductible as a business expense. Check with your tax consultant to get the exact benefits of your equipment lease.

WHAT ARE MY OPTIONS AT THE END OF THE LEASE?

It will all depend on the type of Purchase Option you choose. If you signed a $1.00 or Fixed Purchase Option (generally 10%), you are required to purchase said equipment for the specified amount. If you choose a Fair Market Value Option, then you have the option to purchase the equipment, turn the equipment back into the Lessor or renew your monthly payment for an agreed upon term.

CAN I CANCEL THE LEASE?

The lease is non-cancelable. However, you may arrange for prepayment of the lease or upgrade to a more sophisticated piece of equipment. 

LEASE JUST ABOUT ANY TYPE OF EQUIPMENT

Eight out of 10 businesses use equipment leasing programs to acquire equipment. Typical types of equipment include:

  • Computer Equipment & Software
  • Office Furniture
  • Manufacturing and Construction Equipment
  • Printing Equipment
  • Commercial Vehicles (Trucks, Trailers)
  • Telecommunications Equipment
  • Medical Equipment
  • Restaurant Equipment
  • And Much More 

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Lessee Testimonials

"I cannot thank Fernwood Capital & Leasing enough."
Aaron Taylor
CEO/President

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Vendor Testimonials

"We deal with Fernwood Capital on a regular basis, our experience has always been excellent."
Bryndon O'Hara
General Manager

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