FAQs

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Leasing Application and Approvals FAQs

General Leasing FAQs

How much does leasing cost?

Lease financing is a very affordable option when it comes to equipment acquisitions. Your monthly payment is determined by the options you choose and can be tailored to fit your cash flow needs. If you want to know how leasing affects your bottom line when compared to other options, consider the benefits of Leasing vs. Borrowing vs. Cash.

How is the monthly payment calculated?

Monthly lease payments are determined based on a Lease Rate Factor: a periodic rental payment to a Lessor for the use of assets. The Lease Rate Factor multiplied by the Equipment Cost is equal to the amount of your monthly lease payment.

How do I account for the lease in my company financials?

The lease options you choose up front may have tax and accounting implications. Talk to one of our expert leasing consultants at 1-800-293-1119 or speak with your accountant to determine the best options for you and your business.

What affect does leasing have on my bank line of credit?

Title of the asset remains with the Lessor so no money is borrowed when leasing; you just make monthly rental payments, and as such, your bank line of credit is unaffected.

How will I be billed?

You will be billed by monthly debit to your bank account for each payment.

How much do I have to pay upfront?

A typical lease includes first and last lease payment in advance. Other options are available upon request. Please talk to one of our expert leasing consultants at 1-800-293-1119 or e-mail us for more details.

Will I be charged tax on my lease?

The applicable taxes are added to the monthly lease payment and paid over the term of the lease.

Are Capital Leases tax deductible?

For tax purposes, lease payments are a tax-deductible expense for the lessee and the lessor, as it is the owner of the asset who claims the Capital Cost Allowance (CCA). However, the Canada Customs and Revenue Agency deem a lease to be a sale if either of the following conditions is present:
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Title to the equipment passes to the user automatically by the end of the lease; The lessee is required to purchase the asset and the lessee has the option, during or at the expiry of the lease, to acquire the asset on terms that a reasonable person would exercise.

If any of the above holds, the lease is a sale for tax purposes and the user of the asset claims CCA as a deduction, but not the lease payments.

Who can lease?

Easylease provides leasing services for any company, organization, association or professional.

If my company is new, can I still lease?

Easylease deals with a select group of funding partners that specialize in relatively new businesses and start-ups, and as such, we are often able to approve companies that have been in business for less than one year, pending credit approval

What factors are used to determine credit worthiness?

Some of the information we may collect to put a proper credit package together include;

Commercial Credit Application that shows company registration type, time in business, address etc.

We may acquire a credit bureau rating such as Equifax, TransUnion or PayNet that show payment history, number of trades, high credit limits, bank lines etc.

Bank Statements- only required on occasion

Personal Net Worth Statements – only required on occasion

Two years Financial Statements plus Interims – only required over certain dollar amounts

Principal Information – only required on occasion

Vendor / Supplier Information

Asset details

Any other supporting documentation that we may need to obtain an approval

What has to happen before I receive the equipment?

Step one

Complete our credit application and return. Easylease will review and obtain an approval.

Step Two

Easylease will obtain the suppliers equipment quotation and draft up the lease documents for you to sign.

Step THREE

Sign and send back the lease documents. Upon review we will instruct the supplier to release the equipment.

When does the lease start?

Depending on your requirements, the lease may start at the following intervals:

Upon signing of the lease agreement, if an execution agreement is signed and the supplier requires pre-payment.

When the equipment is delivered and installed, depending on the underwriter.

On the first of the month following installation. A per diem rental payment may be charged up until the first of the month.

What are my options at end of lease?

There are several options for the lessee at the end of the lease term:

Continuing to lease

Purchasing the equipment

Returning the equipment to the Leasing Company

Should you choose to purchase the equipment, the following options are available depending on what was agreed to on signing:

Fair Market Value (FMV)
Stretch lease allows for early purchase option set at a certain percentage
$10 buy out price, where you pay just $10 to purchase the equipment

End of term options are decided by you, the customer, and structured into the lease prior to execution. Once the lease has commenced, the purchase options cannot be changed

What if the equipment I receive has problems?

When your shipment arrives, you will be contacted to ensure that you receive exactly what you have ordered and in proper condition. After your initial receipt of the equipment, your vendor will work with you to troubleshoot problems or replace equipment as defined in your warranty. As the lessee, you will receive the benefits of all “buyer” warranties, as well as the responsibility for maintenance. It is not the responsibility of leasing company.

Who owns leased equipment?

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

May I end my lease early?

If you choose to end the lease early, you may. However, it is only under rare circumstances that terminating a lease during its term is an advisable option. The cost to terminate a lease is based on the balance of payments, plus purchase option plus tax, and any payment in arrears. Easylease makes every effort to maximize your lease termination options with flexible equipment upgrade programs.

Can equipment be purchased at the end of the lease?

Easylease offers lessees the option to purchase the equipment at the end of the lease. Should you choose to purchase the equipment, the following options exist for the purchase price:

Fair Market Value (FMV)

Stretch lease allows for early purchase option set at a certain percentage

$10 buy out price, where you pay just $10 to purchase the equipment.

End of term options are decided by you, the customer, and structured in to the lease prior to execution.

Who services/maintains equipment?

Your vendor or supplier will service and maintain the leased equipment. It is not the responsibility of leasing company

Is insurance required on the leased equipment?

In order to protect both the leasing company and lessee, insurance is required on all leased equipment. In some situations, insurance protection can be included with your lease for a nominal fee.

If I have questions during the term of my lease or loan, whom do I contact?

One of our expert leasing consultants is available during regular business hours at 1-800-293-1119 to answer any questions you may have. Also feel free to eamil us at CustomerService@easylease.ca with your inquiry.

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