Frequently Asked Questions

In order to increase your business, you frequently need to increase your capacity to produce. That means more equipment and lots of questions. At 1st Source Bank, our leasing specialists have in-depth knowledge of all aspects of business leasing. We work with you to determine what lease will best fit your needs. Here are just a few frequently asked questions we can answer for you.

Can I finance 100% of the purchase price?

Yes,with little or no upfront costs.

Can you include equipment installation in my lease?

Yes. Installation and freight charges as well as taxes can be covered in your lease and amortized over its life.

For how many months should equipment be leased?

Leasing terms range from two to five years. Depending on the equipment and your cash flow,a lease can be structured to meet your financial needs.

Who is responsible for insurance, property taxes and maintenance of the new equipment?

As the lessee,you will be responsible for maintaining the equipment,providing the proper insurance and paying any taxes not included in your lease.

Why should I lease instead of paying cash for the equipment?

Suppose you take the cash that you will use to purchase the equipment and reinvest it in the business. You could use it to advertise,purchase inventory,or to train or hire employees. Your return on your investment could be as high as 20-25%.

What happens at the end of the lease?

Depending on the type of lease selected,the following end-of-lease term options may apply. You could:

• purchase the equipment
• return the equipment with no further obligation
• renew the lease and continue making the lease payments
• upgrade with new equipment to prevent obsolescence
  
  

Can I establish a lease line of credit for my equipment needs?

Yes. Lease lines can be approved to meet your capital equipment needs for the entire year.

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