Q: How long will it take to qualify for a lease and how much time does it take to close the deal?
A: Typically it takes 24 hours to hear back on an “Application Only” lease. A lease requiring a review of your business’s financial statements can take a couple of days pending the package is complete. Closing a lease depends on these variables; time to sign and return the lease agreement, delivery and acceptance of products being leased, and a final call to the customer to authorize funding.
Q: What can I expect to pay up front, and are there any hidden fees?
A: Expect to pay one or two payments in advance. If you’re paying two payments up front note that they’ll be recognized and your first and last payment of the agreed upon lease term. A small documentation fee may also be charged up front to cover certain funding costs. NOTE: Hidden costs……not interested!
Q: Suppose I have more than one vendor; am I able to combine invoices into one lease?
A: Yes, it is quite common that multiple vendors appear on one individual lease contract. By preparing the order ahead of time and discussing the multiple vendor issue with your leasing agent up front, you’ll avoid delays in payment. If a vendor cannot deliver near the same time-frame of the other vendors, then a separate schedule pro-rating the lease payment can be arranged using our Master Lease Agreement. Call for details.
Q: My business is seasonal; can I take relief from payments during my off season?
A: Absolutely! We’re very proud of our underwriting ability to customize your billing to suit your budgetary needs. As well as offering Seasonal Billing we have a full arsenal of various other structured billing options.
Q: What is needed to qualify for an equipment lease with DK Capital, Inc?
A: We follow a very basic credit criterion that is more aggressive than conventional banking and conservative enough to protect our underwriting providers. There are two basic elements that make up our credit review, time in business and personal credit. We require a minimum of 2 years time in business and we expect the applicants to maintain a clean personal credit history. Bank and trade account references are also called upon to present a business credit history.
Q: As a vendor, how long will it take to get paid by DK Capital, Inc?
A: Assuming that all of the lease documentation is received and it is correct, and all credit criteria are met, we prefer to pay once the equipment is delivered and accepted by the lessee. In some cases however, it is necessary to pre-fund or progressively pay a vendor. This can be accomplished by pre-qualifying you for this service. Pre-funding or progressive payments are common when dealing with custom built products or when the delivery time-frame steps out of an agreed upon payment term.
There obviously are many more questions that come up but these seem to be very common. Always feel free to ask questions even if they seem redundant or obvious. Being well informed will help make the lease a more enjoyable, profitable experience.