Extends Current Credit Lines - Leasing Provides a non-conflicting source of credit, thereby increasing your borrowing base. Leaves current credit lines open and available for other uses.
Conserves Working Capital - Cash isn't tied up; instead is available for other uses. Nearly 100% financing.
Convenience - of a monthly payment vs. a large cash outlay.
Budget Protection - Acquisitions not contemplated by a budget can be accomplished through leasing.
Fights inflation - Lease cost remains constant. Your are paying with tomorrows money for today's needs!!
100% Tax Deductible - Payment with a true lease.
Choice - You decide end term options.
Flexibility - Multiple equipment purchases can be incorporated into a single lease.
Assets Paid For - Leasing allow the asset to be paid for as it generates revenue
Frequently Asked Questions
What does it cost to apply for a lease?
It doesn't cost anything, unlike with most lending institutions.
How long of a term can I lease for?
Terms range from 12 months to 60 months. We can extend to 84 months on certain types of machinery.
What is the credit criteria?
The business must maintian a satisfactory payment history with its suppliers. The minimum requirements of the business banking relationship are generally only a low four figure balance. We also review the personal credit of the owners of the business and look for relatively clean credit history.
Does all of the Machinery have to come from the same vendor?
No, you may get equipment form multiple vendors.
Who has rights to warranties and licensing for the machinery?
The warranties and/or licensing offered by the manufacturer are passed on to you.
Can I defer or skip payments?
Yes, we offer deferred and skip payments as well as seasonal. For these programs, we will need to set it up at the beginning of the lease.
What is the interest rate?
The amounts charged on an equipment lease are calculated using monthly "rental rate", rather than using a compound interest rate method that is normally associated with conventional loans. Rental rates are based on the lessor's ability to effectively manage risk and costs associated with equipment ownership, while passing on the economic savings to the lessee.
May the equipment be returned at any time?
No, the lease is a non-cancelable agreement for a specified term that your customer selects at the beginning of the lease. Leases are available for terms ranging from 12 to 120 months (depending on machinery type), and can be upgraded or added on.
Can I lease used machinery or machinery coming from somewhere other than a vendor?
Yes, we can lease used equipment. The equipment can come from an end user, an auction or a vendor.
Can I lease equipment that I already own or refinance equipment that I currently have with another leasing company?
Yes, we can write you a check for equipment that you already own if purchased within 120 days and then just make payments to us on a term usually up to 36 months. You can also lease equipment that you already have on lease with another company, in case you want a longer term.
Is the lease transferrable?
Yes, as long as the new lessee's credit qualifies
When do my payments start?
In most cases we collect the 1st payment at lease signing, your next payment will be approximately 30 days after the equipment has been delivered.
Can I lease costs or software?
Yes, we can provide 100% software leases and soft costs such as training, installation and extended warranties and support packages as part of a lease for all types of machinery.
Can I return the equipment and stop making payments?
No, the lease is non-cancelable. You may return the equipment after all payments have been made or may get a discount for paying off early.
Do you offer leasing to new businesses?
Yes, we do leasing for newer businesses. We require a minimum of 6 months in business.
How long does the leasing take?
The credit approval generally takes about 24 hrs or less for applications up to $100,000.
What is the first step to get this process started?
Complete the lease application, then fax it, or call us with the information.
What are the options at the end of the lease?
The end use/lessee my purchase the euipment for its then fair market value (or such other amount if previously agree to in writing by Mid Continent Capital), continue to lease, or return the equipment with no further obligation.
Who is responsible for taxes?
Because this is a "net" lease, end user/lessee is responsible for taxes. Mid Continent Capital is required by law to collect all applicable sales, use and property taxes and remit them to each state.
Who insures the machinery?
The lessee is responsible for insuring the equipment against risk of loss including property and casualty coverage and liability. Lessees typically just add the machinery to their existing policy.
Who provides warranty coverage to the machinery?
Mid Continent Capital passes through all manufacturer warranty coverage to the lessee. Warranty claims are processed for the lessee in the same way they would be if the lessee were the owner of the equipment.
May non-machinery items such as software and maintenance be included?
Yes, one the many benefits of leasing includes the ability to "bundle" a number of equipment items into a lease including software, service and support costs. This way a lessee can make one, simple monthly payment for an entire system or machinery line.
Is there a minimum amount for the equipment cost?
Yes, we only provide funding for leases over $2,000.
Please complete a credit application
MCC will generally respond within 24hrs with a credit decision.
Lease document will be prepared by Mid Continent Capital, Inc.
Documents then need to be properly executed by the Lessee.
Lessee returns the documents with the equipment invoice to MCC.
MCC will then call the customer for verbal acceptance.