What is the lease process?

After the one-page application is completed and signed, it is mailed, faxed or emailed to Kellian Business Finance.  Our normal turnaround time for a credit decision is 24 hours or less.  After this initial review, additional financial information will be required. Upon approval and customer acceptance, the lease documents are mailed overnight or emailed for signature. The completed lease documents and advance payment check are returned via a prepaid overnight service to Kellian Business Finance.  Once received, we issue a purchase order to the vendor who is paid upon delivery and acceptance by the customer.

What happens at the end of the lease?

Our equipment leases are known as "Finance Leases". With this type of lease, the lease payments are paid over periods of twelve to eighty-four months. After the last payment has been made and the Purchase Option of $1 is paid, the customer now owns this leased equipment.

How can the cost of the leased equipment be deducted?

With "Finance Leases", the cost of equipment is capitalized and this cost is expensed with the current limits of bonus depreciation or Section 179. We recommend you consult your tax advisor regarding the income tax consequences for the lease.

Who is responsible for warranty service on the equipment?

The vendor (or original supplier) will be responsible for all warranty service. The leasing company is not responsible. The warranty is handled just as if the equipment was paid for directly by the lease.

What interest rate am I paying?

There is no interest attached to the lease, as it is a rental agreement. If you are looking at the difference between the equipment cost and the total of the monthly payments, then this will vary with the term, cost and residual cost of each lease.

What if I have more than one vendor or supplier?

This occurs quite often and does not present a problem. You can have multiple suppliers on one lease.

When do my lease payments start?

Generally, after making your initial lease payment at closing, your next lease payment is due 30 days after the lease is funded (when your supplier is paid)

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