Who can lease?
Who owns the leased equipment?
What is required to lease Equipment through Diamond Equipment Leasing?
Is a down payment required?
How are leasing charges determined?
What factors are used to determine credit worthiness?
Can the lease be cancelled?
Can the lessee purchase the Equipment at the end of the Term?
Who should sign the lease?
Who services or maintains the equipment?
What about sales and use tax?
What about insurance?
How does the lessee account for the lease?
What effect does leasing have on the lessee's bank line of credit?
How does the lessee account for the lease?
Who can lease?
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Any company, organization or association, however, we cannot lease equipment to an individual for personal use.
Who owns the leased equipment?
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Diamond Equipment Leasing as the lessor is the owner.
What is required to lease equipment through Diamond Equipment Leasing?
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A completed lease application containing one bank reference and 3 trade references are all that is needed. Upon approval, DEL will notify both the vendor and the lessee.
Is a down payment required?
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No, but we usually require a payment in advance held as a security deposit.
How are leasing charges determined?
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The monthly payment is based on the term of the lease, cost of the equipment, and the type of lease plan the lessee selects.
The initial term of the lease runs from 12 to 60 months.
What factors are used to determine creditworthiness?
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- Length of time in business
- Financial condition
- References from financial institutions
- D&B or other credit bureau ratings
- Type of business
Can the lease be cancelled?
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Not for the initial term. However, it is possible to trade in leased equipment for a new piece of equipment
providing the new equipment is leased.
Can the lessee purchase the equipment at the end of the lease term?
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Yes, or the lessee can renew the lease at a substantially lower rental or return the equipment to DEL.
Who should sign the lease?
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If the lease is for a corporation, only an authorized officer of the corporation should sign.
If the lessee is a partnership, both of the partners should sign.
If the lessee is a sole proprietorship, the owner must sign.
Who services or maintains the equipment?
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The lessee is responsible for the maintenance and received all 'buyer' warranties.
What about sales and use tax?
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All applicable taxes will be included in the lease payments.
What about insurance?
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We require that the equipment be insured. For the lessee's convenience, we will contact their insurance agent and get the insurance binder.
How does the lessee account for the lease?
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The lessee's accountant should determine the best tax treatment for his client.
What effect does leasing have on the lessee's bank line of credit?
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When equipment is bought with borrowed funds, credit lines with a lender are reduced.
When equipment is leased, a business has in fact established an additional line of credit with its lessor.
How does the lessee account for the lease?
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The lessee's accountant should determine the best tax treatment for his client
