Questions & Answers

What is Equipment Leasing?

  • Process in which a funding source (the lessor) provides financing for new or used equipment to another party (the lessee).
  • Transaction in which a customer (the lessee) is given the rights to use equipment provided to them by a leasing company (the lessor) for a specified length of time (Lease Term) and for a specified payment plan – all outlined in a lease agreement.
  • When the lease term ends, the lessee (depending on the lease type they agreed to), will have the option to purchase, return, or continue to lease the equipment.

What Kinds of Equipment Can I lease?

  • Quick Fund Financial primarily provides financing for equipment (new or used) within the restaurant, technology/software, healthcare, construction, and agriculture categories. Link to list of all industries served.

What types of leases are available?

  • Fair Market Value (FMV): often used for acquiring equipment that quickly depreciates in value an FMV is the most commonly used lease option. Generally, an FMV offers the lowest monthly payments and is 100% tax deductible an operating expense. With a FMV you have 4 options once your lease agreement is up; you can buy the equipment at its fair market value, lease the equipment again, trade-in the equipment for a newer model/version, or return the equipment.
  • Dollar Buy-Out: A Dollar Buyout Lease enables you to purchase the leased equipment for $1 at the end of the lease agreement. Thus, making it a strong option if you intend on retaining the equipment after the lease agreement ends.
  • Sale Leaseback: A Sale-Leaseback is a creative concept that involves the following process:
    • You sell your equipment to QFF
    • We lease that equipment back to you over a set-period of time
    • This type of transaction provides you with immediate cash, while enabling you to still use the equipment. Most companies use the cash they get from the Sale-Leaseback to expand their business and revenues.

How are Lease Rates Determined?

  • Cost of equipment, lessor credit history, length of lease, and lease type. Rates are fixed but can be paid off at any time.

How do I start process to get an equipment lease?

  • Fill out the quick and easy online lease application (link) – for credit decisions on transactions under $10,000 receive response within seconds, for transactions over $10,000 receive response typically within 4 hours. If approved, same-day funding may be available.

What are difference between a lease and paying with cash?

  • With a lease, payments are made in installments over time. When paying with cash you make one up-front payment. Leasing also has tax benefits.

What are the difference between a lease and a bank loan?

  • Leasing is much a faster process and often a more affordable option. The bank loan application/approval process can take many weeks and often requires extensive financial information and large down payments/collateral. On top of all that bank loan approval rates are typically quite low. When leasing through QFF you fill out a one-page application – which doesn’t require extensive financial information (on transactions $100,000 or under) or collateral/down payments (may require one advance payment – though not as large as typical loan down payment). Credit decisions are made within two minutes for transactions under $10,000, 4 hours for transactions over $10,000. If approved (QFF has higher approval rates than banks) same day funding may even be available.

When do I have to provide financial statements?

  • Financial statements are only required on transactions over $100,000 or when there is insufficient information on credit report.

Are Lease Payments Tax Deductible?

  • If your lease is an FMV, your company will typically be able to deduct 100% of your installments from taxable income. Contact your tax accountant with questions, as there is variation between different types of businesses.

May the equipment be returned at anytime?

  • No, once the lease is singed it becomes a non-cancelable over the course of the specified term.

Do interest rate fluctuations influence lease payments?

  • No, with leasing through QFF the monthly payment is fixed, it will not change over the course of the specified leasing term.

If I don’t have an equipment vendor, can I still apply for financing?

  • Yes, QFF has a network of authorized equipment dealers, contact us to find the right equipment vendor for your needs.

Should I even apply if I have bad credit?

  • Yes, QFF has the ability to fund challenged credits, plus the application is free (and quick) – why not apply?

Will QFF provide financing for start-ups?

  • Yes, QFF is able to provide financing for start-up companies, in addition to established companies.