Help & Support
Leasing
The instinct in business is always to buy. But these days, with businesses being as nimble as ever, leasing may be a better way for you to go. And 1st Source knows how to make it happen. From your computer systems to company vehicles, we can help you use your cash in other ways to keep your business moving.
Leasing 101
There’s a lot to be gained from financing for your business. You can use the money you save by leasing and spend it on more employees, upgrading computers, advertising, and more. That said, there’s also a little you need to know. So, here’s the crash course, delivered to you simply, as only 1st Source can.
For one, you can finance 100% of the purchase price with little to no upfront costs, to boot. You’re responsible for keeping the equipment in good order, providing insurance, and paying taxes not included in your lease. You can also have your equipment installation (like freight charges) and the taxes covered by and paid back over the course of your lease.
While you should look at what works for your business, most leases last anywhere from two to five years. But this should always be tailored to your needs and your cash flow. And when the lease does end, you have even more options when it comes to your equipment-you can buy it, return it, renew it or even upgrade.
The Rule
So, what is this “rule” you may hear about? First of all, if your business is a legal entity like a corporation, limited liability company or partnership – this will affect you. Individuals and sole proprietorships – it probably won’t. It applies to all qualifying accounts for legal entity customers, like checking, savings, CDs, loans, and leases.
The Rule was created to combat criminal activity like drug trafficking, organized crime and terrorism and make sure there was no money laundering. So, laws and directives were passed for banks, credit unions and other financial institutions to follow. You may have heard of some of them like the Bank Secrecy Act and The USA Patriot Act. The Rule requires the disclosure of key individuals who own or control a legal entity (Beneficial Owners). Beneficial Owners are (per The Rule) those who meet “Ownership” or “Control” criteria:
Ownership
Each individual who owns, directly or indirectly, 25% or more of the equity interests of the legal entity.
Control
An individual who manages the legal entity, like the CEO, CFO, COO, managing member, General Partner, President, Vice-President or Treasurer or anyone who regularly performs similar functions. While more than one individual has these responsibilities, only one is required to be disclosed under the Rule.
An authorized representative of the legal entity will be required to provide and certify the accuracy of the below for each identified beneficial owner:
- Full legal name;
- Date of Birth;
- Residential or Business Street Address (cannot be a PO Box);
- Social Security Number or Passport Number and Country;
- Ownership Percentage (not required for control person); and
- Copy of driver’s license, passport or other valid government-issued photo identification.