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What types of equipment does Beacon Funding lease?
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Beacon Funding has specialized in embroidery, screen printing, sign business, pad printing, graphic arts and machine tool equipment since 1990. We also lease many other types of business and professional equipment, including computers, office, warehouse and medical equipment.
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What vendors can I order from?
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A benefit of leasing with Beacon Funding is that you can purchase equipment from any reputable vendor of your choice. Select your equipment and options, negotiate your best price and let us do the rest!
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Can non-equipment items such as software and maintenance be included?
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Yes. One of the many benefits of leasing includes the ability to "bundle" a number of equipment items into a lease including software, service and installation costs. This way, you can make one simple monthly payment for an entire system or equipment line.
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How long does it take to be approved?
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Your simple lease application will usually be approved within 24-48 hours! Applications can be made via phone, fax or on-line over our secure server.
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Are there any application fees?
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No, unlike many lending institutions, Beacon Funding does not charge any application fees.
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What are your approval requirements?
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During the approval process, we evaluate your business credit history (including bank and trade references), personal credit history of the owner(s) and collateral value of the equipment. If your credit history has some negative items, we often can approve a lease with a shorter term and/or a down payment.
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Why did you request my personal guarantee?
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An important part of our credit decision is based upon the personal credit bureau report of the owner(s). These reports are typically very accurate and reliable and allow us to provide you with a quick credit decision. Historically, we have found that the payment patterns of privately-held businesses mirror that of the owner(s).
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What happens after I am approved?
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Once you are approved, we prepare lease documents and overnight them to you. After you sign and return your lease documents, Beacon Funding issues a purchase order for the exact equipment that you have selected. Upon your verification of delivery and acceptance of your equipment, we pay the vendor and your lease begins. Your first payment is due about 30 days later.
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How long can I lease?
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Most leases are written for 24, 36, 48 or 60 months, depending upon the type of equipment. Leases for items that depreciate rapidly (such as computers) are usually shorter terms. Expensive, durable machinery can be leased for terms up to 84 months.
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How much equipment can I lease?
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Beacon's typical lease amounts range from $7500 to $500,000. For equipment costing under $5000, many of our clients find it non-beneficial and cost effective to finance via alternative measures (i.e. cash flow, credit cards etc.)
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How are payments made?
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Payments can be structured to meet your needs. Our typical payment schedule would include the first and last payments made at the time you sign your lease documents, with your first monthly payment due about 30 days after your acceptance of the equipment.
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What are the options at the end of the lease?
What end of lease purchase options are available?
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You may purchase the equipment for its purchase option amount, continue to lease, or return the equipment with no further obligation.
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What end of lease purchase options are available?
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We offer purchase options to meet your needs:$1.00 purchase option (which is treated as a purchase) Fixed percentage option (our most popular is 10%) Fair Market Value option (often treated as deductible expense payments)The best option for you can be determined after a brief conversation. We encourage you or your accountant to call us.
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What is the interest rate on a lease?
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The amounts charged on an equipment lease are calculated using monthly "rental rates", rather than by using a compound interest rate method that is normally associated with bank loans. Rental rates are based on the term of the lease, the lessee's credit history (both business and personal), and the type of equipment being leased. The stronger and more established your business, the lower your payment should be. For an estimate of a monthly payment, try our Lease Calculator.
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Who is responsible for taxes?
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Because we offer a "net" lease, the end user/lessee is responsible for all taxes. Beacon Funding is required by law to collect all applicable sales, use and property taxes and remit them to each jurisdiction. Tax types and rates vary by state and locality.
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Who insures the equipment?
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The Lessee is responsible for insuring the equipment against risk of loss including property and casualty coverage and liability. Lessees typically just add the equipment to their existing policy.
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Who provides warranty coverage on the equipment?
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Beacon Funding passes through all manufacturer warranty coverage to the Lessee. Warranty claims are processed in the same way they would be if the Lessee was the owner of the equipment.
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Can the lease be cancelled or paid off early?
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No, the lease is a non-cancelable agreement for a specified term that you select at the beginning of the lease. However, we do provide you the opportunity to upgrade, trade-in or "buyout" your lease before the end of the term.
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What if my equipment becomes obsolescent?
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In the unlikely event that you need to upgrade your equipment during the lease term, we will work with you to meet your goal. We can amend your original lease, assist you with a trade-in of your original equipment, or a new lease can be structured.
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