Business Lease Loans
A growing and popular alternative to financing asset purchases is lease financing. Rather than owning the asset and getting a traditional bank loan, you can lease the asset with the alternative of keeping it or returning it when the lease expires. For many types of equipment that rapidly lose value due to vastly improving technological improvements, ownership of an asset may not be a good use of capital. First National Bank has experience in all types of leasing: cars, school buses, computer and copier equipment, to name just a few. If it can be purchased and traditionally financed, it can probably be leased as well.
Competitive rates that are usually fixed for the loan term. In the case of schools and municipalities, a tax-exempt rate may be offered if the purchaser qualifies.
Loan terms vary depending on economic life of the asset being acquired.
Loans are generally based on a percentage of the Invoiced Cost. Apply now!
In addition to completing a loan application, it is generally recommended that you bring along the following additional financial information to expedite your loan request:
- A business financial statement, and copies of business tax returns covering a 3-year period if possible.
- A personal financial statement and copies of 3 years of personal tax returns if possible.
- A copy of the lease describing the lease terms and describing the equipment you are acquiring.
- A short business plan indicating how the asset will affect growth, cut costs, or improves operations if installed. In short, why you want to acquire the equipment.
- For companies that are brand new or in a start-up mode, a business plan may be your most important piece of banking information.
- Most leases are for fairly traditional assets with easily identifiable asset values. For extremely expensive equipment in specialized industries, an appraisal from a generally recognized evaluation expert could be required.
