Leasing Frequently Asked Questions

What is a Lease?

A lease is an agreement by a customer (called the lessee) to pay a monthly rental payment for a specific amount of time for the right to use rental property owned by the lease company (called the lessor). The customer is responsible for insurance, maintenance, and all other costs of ownership.

How do I apply for a lease?

Applying for a lease is easy. You can also fax our on-line application to us. You can also call and speak to one of our Accram representatives.

What types of leases are available?

We offer $ 1.00 Buyout, 10% Buyout and Fair Market Value lease options.

Who can lease equipment?

Any company, organization or association and all municipal, state and government agencies can apply for leasing. At present we do not lease equipment to an individual for personal use.

What is the difference between a lease and a loan?

A lease is an agreement to make payments for a specific amount of time for the right to use the equipment owned by the lease company.

How much of an initial investment is required?

Usually, two monthly payments, the first and the last months are required upon signing the lease agreement.

What is the minimum equipment cost that can be leased?

The minimum is $ 2,000.

 Who owns leased equipment?

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

What is the interest rate in this lease?

Lease rates are different from interest rates. Since you are leasing and not taking out a bank loan to finance your purchase, there is no “interest rate” as we usually think of one. With leasing you are paying to rent the equipment, with the monthly payment amount based on the type of leasing plan you choose, the terms of the lease the cost of the equipment, and business and personal credit history.

We will provide the best possible lease rate for you and your company.

Can equipment be purchased at the end of the lease?

Yes. You have the option of purchasing the equipment, continuing to lease, or returning the equipment to the leasing company.

How long does it take to be approved?

For most completed applications we will have an approval within three to five working days.

Can the lease be cancelled?

No. A lease is a non-cancelable contract.

Do I need to have insurance on leased equipment?

Yes. Insurance is required on all leased equipment. Insurance protection can sometimes be included with your lease for a nominal fee.

Can equipment be added to a lease at a later date?

Yes. Equipment add-on programs are available throughout the term of the lease.

May I end my lease early?

Yes. There is no penalty for early payment.

What are my options at the end of the lease?

You have the option of continuing to lease, purchasing the equipment, or returning the equipment to the leasing company. 

 When does the lease start?

The lease starts when we receive acknowledgement that the equipment you ordered has been received and is in good working order.

How is my monthly payment calculated?

A monthly lease payment is determined by 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 determines the monthly lease payment.

What is the buyout at the end of the lease?

You have a variety of options available to you at the end of the lease term. These include Fair Market Value, $ 1.00 Buyout, and 10% Buyout.

Are lease payments a tax write off?

Typically, on a Fair Market Value lease option, the IRS will allow you to write 100% of the lease payments off as an operating expense. It is recommended that you consult with your tax advisor for the specific application to your business.

Who services and maintains the equipment?

We will service and maintain your lease. We can provide leases that include equipment, service, toner, maintenance kits, and replacement parts. One price per month for all of your printing needs.

Are lease rates variable?

No. Lease rates and terms are fixed.

Can service and installation costs be added to a lease?

Yes. Installation and service fees can normally be included in the lease as well as the maintenance contract.

What factors are used to determine credit worthiness?

The major factors are length of time in business, references from banks and trades, and Dun & Bradstreet and other credit bureau ratings.

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

An Accram representative is available during regular business hours by phone, fax or email.

I am a new corporation and need equipment, what type of paper work will be required to obtaining leasing?

New Corporations are subject to additional documentation beyond the lease application required for the established business. These may include: two years tax returns and personal financial statements for each principal and occasionally a completed business plan.

What is the fair market value purchase option going to be?

The Fair Market Value of the equipment will be determined by the market at the time of sale.