Q: Who is Vendor Finance
Group? CFLC is a wholly-owned subsidiary of California First National Bancorp ("CalFirst Bancorp"). CalFirst Bancorp is a publicly traded bank holding company that also owns California First National Bank.
Q: What are the advantages
of leasing? Q: Why should I lease
equipment instead of buying it? Leasing is practical. By leasing, you transfer uncertainties and risks of equipment ownership to the lessor, which allows you to concentrate on using that equipment as a productive part of your business. Leasing is cost effective. Equipment may be expensive and some costs can be unexpected. When you lease, your risk of having to operate with obsolete equipment is lower because you can upgrade or add equipment to meet your changing needs. Leasing allows you to stay on the cutting edge of technology. Business managers have learned that the primary benefits of higher productivity and profit come from using equipment without owning it. Leasing helps conserve your operating capital. Leasing keeps your other lines of credit open, helping to better manage your balance sheet. You don't tie up cash in equipment and you avoid costly down payments.
Q: What is a lease? A lease is typically a long-term arrangement (3 to 5 years) in which the lessee has a non-cancelable obligation to pay rentals. Such leases have contractual provisions requiring the lessee to pay all equipment-related expenses during the lease term (a "net" lease). Because the equipment is in the lessee's possession and control, the lessee bears all risk of loss or damage. Further, the lessor will disclaim all warranties, and the lessee will waive any rights to claims against the lessor for problems with the equipment. This does not, however, impair warranties and other rights of the lessee against the manufacturer or vendor. Lease arrangements can be structured in a variety of ways to suit the needs of the lessee. Q: Why finance rather than
purchase? Leasing can be especially beneficial in the information technology area, where many businesses opt to finance technology acquisitions because the life cycle of technology is so short.
Q: What types of equipment
do you finance?
Q: What does my company need
to do to secure lease financing from Vendor Finance
Group? Second, you will need to review our Lease Agreement (available online). If you have any questions, please call us. Third, in the case of a privately-owned company, you will need to complete our Application Form (available on-line) and submit it electronically to us. However, for publicly-traded companies, please call us to simply advise that you are interested in securing lease financing from us. Once we have received the completed Application Form or after we have spoken with you about your lease financing requirement, we will send you a letter confirming the basic terms of the transaction. We will request that you countersign the confirmation letter and fax it to us. At that point, our credit review process will commence. At any time, you can request assistance from an experienced leasing professional by calling our toll free number, 800-496-4640, x.512.
Q: How long will it take to
obtain credit approval from Vendor Finance
Group? Q: Can Vendor Finance Group
(i) improve upon the lease payments I've obtained from the
"Lease Calculator" and (ii) help me in structuring a lease
financing not offered on the "Lease
Calculator"? The availability of federal income tax benefits is determined, ultimately, by the Internal Revenue Service's opinion on the structure of your lease financing. If the lease financing is determined to be a "true lease", then Vendor Finance Group is entitled to the depreciation deductions associated with ownership of the leased property and you are entitled to expense the full amount of each lease payment. If the lease financing is determined not to be a "true lease", then you retain the depreciation deductions and you expense only the deemed interest portion of each lease payment. We always recommend that our customers seek guidance on these matters from their own tax and accounting advisors. Q: Do you have a minimum
transaction size?
Since you are leasing and not taking out a bank loan to finance your purchase, there is no "interest rate" in the traditional sense. It's more like leasing office space. You're paying to rent the equipment, and the monthly payment is based on the type of leasing plan you choose, the terms of the lease, and the cost of the equipment. Q: What should I do if I
have problems with the equipment that I leased? Q: How do I find a contact
at Vendor Finance Group? Sales Questions - WebMaster -
Q: Who really owns the
equipment? Q: Can I move the leased
property to a different location? Q: Will I be required to
provide insurance coverage with respect to the leased
property?
Q: What should I do if
problems arise with respect to the leased
property? Q: Vendor Finance Group
offers "net" leases. What does that mean? Q: Will Vendor Finance
Group fund progress payments to the supplier?
Q: What are the necessary
steps to securing a lease financing from Vendor Finance Group,
from structuring and pricing the transaction to payment of
invoices? Q: What if I wish to
pre-pay the lease before the end of term? Q: How do I set up a lease
with Vendor Finance Group?
However, you may negotiate other kinds of end-of-lease options. Q: How do I set up a lease
with Vendor Finance Group?
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