FAQs
Frequently Asked Questions
How large a transaction can you fund?
We finance transactions ranging from $5,000 to $5 million.
What is the approval process like?
We make the approval process as fast and easy as possible. With our simple one-page credit application, which does not require financial information, you can finance up to:
- $250,000 for hard asset equipment, or
- $150,000 for soft collateral equipment.
We can process most applications within 24 hours - even faster if you submit a full application package.
When your application is approved, we prepare the lease documents and send them to you for signature. Once you sign the lease agreement, we issue a purchase order to the equipment vendor. When you accept delivery of the equipment, MADISON EQUIPMENT FINANCING pays the vendor and your lease takes effect.
Who can lease equipment?
MADISON EQUIPMENT FINANCING will finance equipment designated for business or commercial use to any company, association, non-profit organization or individual.
Why lease rather than just borrow the money?
When you borrow money to buy equipment, you use up your available credit. When you lease, you have credit available for other purposes. In addition, depending on how your lease is structured, you may be able to expense the payments. See the Benefits of Leasing and Lease Options for more information.
I've never leased before. Is that a problem?
No. Our experienced staff will walk you through the entire application and funding process. We pride ourselves on giving our clients individual attention and helping them choose the financing option that best suits their business needs.
What are the up-front costs for a lease?
In most cases your up-front cost is the equivalent of two monthly payments - your first and last monthly lease payment - plus a nominal documentation and filing fee (i.e., for processing the lease documents and filing the UCC-1 financing statements required in your state). We do not charge an application fee.
Can I cancel the lease?
The lease is non-cancelable. But you do have the option of prepaying the lease or upgrading to a more sophisticated piece of equipment.
Can I add equipment to an existing lease?
Yes. You can add equipment to the lease at any time. In most cases, the additional equipment must cost $5000 or more.
What about sales tax?
Sales tax is added to your lease payment each month as a separate charge
What is the typical process for commercial equipment leasing?
You fill out a simple, one-page credit application. Apply now and see how easy the process is.
What about insurance?
For your protection, the equipment must be insured. You simply instruct your own insurance agent to send a certificate of insurance to us at no additional cost to you. Or, we can issue a certificate through the ELPA (Equipment Leasors Protection Association) and bill you for the annual premium.
How do I determine what type of lease is best for my company?
Our trained representatives can help you select the lease option that best meets your business needs. Key considerations include:
- How long will you need the equipment?
- How likely is it to become obsolete?
- How consistent is your cash flow?
- Which payment option would work best for your budget and cash flow needs?
- What are your tax needs? We can give you general information about the tax benefits of various lease structures, but you should discuss the details of your situation with your accountant.
- What options do you want to retain at the end of the lease term?
Your MADISON EQUIPMENT FINANCING representative will walk you through the lease options and payment options to find you the solution that works best for your business.