Questions:

What are soft costs?  Soft costs include items like software, warranty, installation, service contract or other items that can not be used as hard collateral.

What is a personal guarantee and why do I need one?   A personal guarantee is a legal document whereby an individual takes responsibility for payment of debt if the company primarily liable fails to perform.  The benefit of a personal guarantee is that it lowers your lease rate because it lowers the risk.

How will the lease term (length of the lease) effect my payment amount?   The payment amount will be greater for a shorter lease term.

What is tangible net worth?  The tangible assets that remain after deducting liabilities.  Such assets do not include intangibles such as goodwill and rights to patents or royalties.

What is residual value?  This is the future value of the equipment at the end of the lease term.  For a $1 buy-out lease, type 0 in this field.  For a 10% purchase option, type 10.

Still need help?  See other frequently asked questions for equipment leasing.