Frequently Asked Questions

  1. What is a lease?
  2. Who can lease?
  3. What information do I need to provide to get approved for a lease?
  4. Do I have to personally guarantee the lease?
  5. What is the lease term?
  6. Is a down payment required?
  7. When do payments start?
  8. Can the lease be canceled?
  9. Is there a penalty for pre-payment?
  10. Is there a minimum transaction size?
  11. How long does it take to be approved?
  12. Are your rates competitive?
  13. What will my rate be?
  14. Why am I paying sales, property, or use tax?
  15. Is my lease tax deductible?
  16. What are the ends of term options?
  17. Why would I want a FMV lease as opposed to a $1.00 buyout lease?
  18. What should I do if I’m not sure whether or not I want to own this equipment in three years?
  19. Can I finance 100% of the purchase price? My bank requires a 25% deposit.
  20. Can I finance the installation of my new equipment?
  21. My existing lease still has one year remaining. Is there anything I can do to acquire the equipment my business needs today?
  22. Does Aspen Corporate Funding offer leasing to public agencies, such as schools or governments?
  23. My credit is not that good. Can I still get a lease?
  24. Why should I lease vs. purchase?
  25. When do you pay the vendor/manufacturer?
  26. What types of equipment can you lease?
  27. What types of equipment can’t you finance?
  28. Why should I work with Aspen Corporate Funding?
  29. We are a start-up company and need equipment, what type of paperwork will be required to obtain financing?
  30. What is the documentation flow of an average deal?
  31. Can I make payments electronically?
  32. Do I need to insure the equipment?
  33. Can I upgrade or add-on to my leased equipment?
  34. Can the leased equipment be moved?

Q. What is a lease?
A. In simple terms, a lease is a contractual arrangement between the lessee (the customer) and the lessor (the funding source). The lessor purchases the equipment from your supplier of choice and leases it to the lessee for a fixed, regular payment. Generally, there are two different types of leases: a true lease and��a finance lease.
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Q. Who can lease?
A. Any company, organization, or association. We cannot lease equipment to an individual for personal use.
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Q. What information do I need to provide to get approved for a lease?
A. Our 1 page application is easy to understand and can be faxed for expedited approval. Generally this is all the information we need, although additional information may occasionally be needed. See Credit Requirements.
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Q. Do I have to personally guarantee the lease?
A. A personal guarantee is usually not required.
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Q. What is the lease term?
A. Lease terms will typically be 24, 36, 48, 60, or 72 months with either fair market value or $1.00 buyout at lease end.
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Q. Is a down payment required?
A. Depending on your credit a security deposit, equal to one or two monthly lease payments may be required. It can be applied to the purchase of the equipment at lease end, or returned to you if there are no other payments due.
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Q. When do payments start?
A. Typically, regular lease payments start 30 days after the lease documentation is completed. To meet the unique needs of larger customers, we can tailor invoice formats and payment schedules.
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Q. Can the lease be canceled?
A. No, a lease is non-cancelable. However, Aspen Corporate Funding will work closely with customers to ensure their needs are met with flexible early buy-out, add-on, or technology refresh options.
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Q. Is there a penalty for pre-payment?
A. No. However, because a lease is a long-term rental contract, you will be responsible for the remaining payments on your lease. Depending on when in the term you would like to pay it off, a deduction off the remaining payments may apply.
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Q. Is there a minimum transaction size?
A. Yes, Aspen Corporate Funding has a $10k minimum transaction size. Our credit analysts will determine the amount of financing we can offer.
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Q. How long does it take to be approved?
A. For most applications we will have an approval decision within 24 hours of completing and submitting the required paperwork. In some cases there will be additional paperwork requested after the initial packet has been submitted.
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Q. Are your rates competitive?
A. Yes, our rates are competitive. Our pricing analysts are constantly reviewing our competitors’ pricing. Yet, we all know there is more to a product than price. We provide a wide variety of other services that help make your job easier. Most importantly, by dealing with Aspen Corporate Funding you are in a far better position to receive more favorable treatment when it comes to upgrades or the end of the lease than with a third party finance company.
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Q. What will my rate be?
A. Lease rates depend upon a variety of factors including:

  • Type of business
  • Number of years in business
  • Business credit history
  • Fair market value or $1.00 buyout
  • Type, brand, and age of the equipment
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Q. Why am I paying sales, property, or use tax?
A. Whether you lease your equipment, pay cash for it, or obtain a bank loan, sales, property and use taxes are charged according to the state and local authorities where your equipment is located. We collect the tax and pay it to the tax agency, just as any other vendor would do.
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Q. Is my lease tax deductible?
A. If your lease is structured as a true lease, usually a Fair Market Value lease, then the monthly payments are deductible as an expense according to IRS guidelines. If your lease is structured as a finance lease, usually a $1 buyout lease, it is treated as a capital purchase and the equipment is depreciated. Please consult with your accountant for proper handling of tax issues.
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Q. What are the ends of term options?
A. Aspen Corporate Funding offers a full array of lease solutions. End of term options include Fair Market Value, $1.00 buyouts and 10% Purchase Options. Our Financial Advisors will work to customize lease proposals to satisfy individual requirements.
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Q. Why would I want a FMV lease as opposed to a $1.00 buyout lease?
A. Fair Market Value leases typically offer the lowest monthly payments and the entire payment amount can be deducted as a business expense. Furthermore, at the end of the lease term you simply return the equipment to the lessor and replace it with new technology, eliminating the burden of disposing of old equipment and relying on outdated equipment.
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Q. What should I do if I’m not sure whether or not I want to own this equipment in three years?
A. Many customers worry about future technology requirements. FMV leases give you the lowest monthly payments and the end of lease option to either purchase the equipment or return it to the lessor. With leasing, you have the flexibility to upgrade to new and improved equipment at the end of your lease term.
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Q. Can I finance 100% of the purchase price? My bank requires a 25% deposit.
A. Yes. We will finance 100% of the purchase price, and usually no down payment is required.
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Q. Can I finance the installation of my new equipment?
A. Yes. Most soft costs including installation, delivery and freight charges, training, as well as taxes, can be included in your lease and amortized over its life.
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Q. My existing lease still has one year remaining. Is there anything I can do to acquire the equipment my business needs today?
A. Aspen Corporate Funding can work with you to buy back the existing lease and incorporate that into a new lease for the new equipment.
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Q. Does Aspen Corporate Funding offer leasing to public agencies, such as schools or governments?
A. Aspen Corporate Funding is a full-service leasing organization offering lease solutions to the public sector, as well as commercial businesses. ACF offers tax-exempt financing to organizations that qualify along with specific terms and conditions to accommodate their unique requirements.
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Q. My credit is not that good. Can I still get a lease?
A. Aspen Corporate Funding has alternative funding sources that work with lessees that have blemishes on their personal credit history.
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Q. Why should I lease vs. purchase?
A. Leasing has several benefits over purchasing. We have listed the most common under the “Benefits” section of this site. If you still have questions after reviewing this material please��contact us directly.
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Q. When do you pay the vendor/manufacturer?
A. When the equipment has been delivered and accepted by the lessee in good working order, a payment for the full purchase price is sent to the vendor/manufacturer.
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Q. What types of equipment can you lease?
A. Aspen Corporate Funding can supply financing for most pieces of equipment used in a commercial setting. An example list of equipment can be found under the “Types of equipment that can be leased” portion of this site. If there is a question whether a piece of equipment can be leased please contact us and we will be happy to assist you.
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Q. What types of equipment can’t you finance?
A. Types of equipment that are difficult or impossible to be removed are generally not considered for leasing.
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Q. Why should I work with Aspen Corporate Funding?
A. Aspen Corporate Funding specializes in leases with small to mid-size companies. By limiting our focus we can supply you the best possible service and rates available.
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Q. We are a start-up company and need equipment, what type of paperwork will be required to obtain financing?
A. Start-up companies are subject to additional documentation beyond the lease application required for established businesses. These may include:

  • Two years tax returns for the principles of the corporation
  • Personal financial statements for each principle
  • Completed business plan

Each piece of information is evaluated in the approval process to obtain the best possible rate for your company.

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Q. What is the documentation flow of an average deal?
A. For established corporations the process begins with the completion of the lease application. Applications are reviewed for type of equipment, funds requested and risk. A decision is made and for approvals a lease agreement is sent to the lessee for signature. Upon return receipt of the packet, Aspen Corporate Funding notifies the vendor/manufacturer for delivery of requested equipment. Upon receipt acknowledgement by the lessee, the manufacturer is paid and lease payments begin as stated in the lease agreement.
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Q. Can I make payments electronically?
A. Yes, you may sign up for an auto debit plan, which allows you to have your monthly payments automatically deducted from your business banking account.
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Q. Do I need to insure the equipment?
A. Most leases require that customers insure equipment for its full replacement value and that proof of such insurance be provided.
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Q. Can I upgrade or add-on to my leased equipment?
A. In most cases, yes. This is one of the key benefits of leasing through Aspen Corporate Funding. Our goal is to provide the solution you need, when you need it.
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Q. Can the leased equipment be moved?
A. Yes, with written notice.
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