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Why
lease?
Leasing offers 100% financing that can help your
company's financial picture by matching the terms of the
lease with the useful life of the equipment thereby
enhancing your company's financial position. Leasing can
require less in capital dollars than any other method of
financing and saves cash and other established credit
lines for more profitable uses elsewhere within your
business. |
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Why
lease with NLFC?
Many solid reasons including:
NLFC's application turnaround time is substantially
faster turnaround time than most banks. leasing is an
additional credit source for you. A significant
percentage of our business is with repeat customers,
some of whom have 30+ leases with NLFC over the years.
Consistent ownership that is steadfast in its commitment
to honesty, fairness and the best service in the
industry.
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Financial strength and performance: NLFC holds Dun
and Bradstreet's highest 3A1 credit rating.
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Integrity: Recipient of the Better Business Bureau's
highest Award for business ethics.
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Peace of mind: NLFC one of the oldest (if not the
oldest) continually-owned, privately held leasing
and finance companies in America.
NLFC lease to legal business entity large or small
including municipal and
government agencies
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How
does the leasing process work?
A)
You decide the equipment or titled vehicle needed and
the vendor.
B) A brief application is completed and submitted either
by phone directly with an NLFC representative, by fax,
on-line or through the mail.
C) The application is processed and a decision quickly
rendered.
D) Terms of the lease are agreed upon.
F) Lease is signed either in person with an NLFC
representative or sent by overnight courier. A pre-paid
return express envelope is included as needed.
G) Completed documents and deposit are received by NLFC
and reviewed for accuracy.
H) NLFC purchase order is promptly sent to the vendor
authorizing delivery of the equipment or titled vehicle
selected.
I) NLFC verifies delivery with each client, pays the
vendor invoice and the agreement commences. See
Vendor Testimonials and
Lessee Testimonials.
REQUIREMENTS: For clients in business 3 - 5
years, only the completed credit application and bank
reference is generally required for amounts up to
$100,000.00. Additional credit information will be
required if in business less than 3 years. Publicly
traded companies applying for up to $500,000 just submit
last 2 years annual reports, contact person and phone
number. Municipalities kindly complete and submit the
Municipal Quote form. |
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What
interest rate am I paying?
There is no true interest rate attached
to a lease since it is basically considered a rental
agreement for tax purposes. Lease payment is based on
cost of the leased assets, term, buyout option and the
individual credit criteria of each applicant. Leasing is
among the most flexible, creative, innovative and
competitive financing options available. In some
instances, when lease tax savings are considered the
interest rate can even be negative. A negative rate
means your tax savings are greater than interest paid.
See Example |
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Are
my monthly payments tax deductible?
Unlike borrowed funds, lease rental payments are
normally treated as a business expense that comes out of
pre-tax income instead of after-tax profits. This means
that your lease payments can be fully tax deductible as
a business expense. As individual situations can and do
vary, NLFC suggests checking with your tax consultant. |
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What
are the end of the lease options?
This
will depend on the type of Purchase Option you chose at
lease inception:
One Dollar Option:
You may buy the leased assets for $1.00 upon successful
completion of the lease.
10% option:
You may purchase the leased assets for 10% of original
cost upon successful completion of lease.
Fair Market Value option-FMV:
You may either return the equipment to NLFC after
completion of the initial lease term, purchase for the
current appraised value or renew your lease at a lower
payment. |
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May
I close out the lease early?
Yes,
and you could realize some savings. With NLFC a discount
may apply based on factors such as lease balance at time
of closeout, how you have handled your lease and whether
or not you are entering a new lease with us.
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More
Questions?
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