Q - Can my lease be cancelled or paid off early?
A - You can trade in your current equipment for new leased equipment before the expiration of the initial term (subject to credit approval). Of course, any balance from the old lease can be rolled over into the new lease for your convenience.
Q - What is the interest rate in this lease?
A - Since you are leasing and not taking out a bank loan to finance your purchase, there is no "interest rate" as we usually think of one. It's more like leasing office space. You're paying to rent the equipment, with the monthly payment amount 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?
A - The vendor providing the equipment is solely responsible for any service or warranty issues. Marlin's role is to assist you in financing the equipment, the same way a bank would finance a car.
Q - Why did you request my personal guaranty?
A - Marlin makes fast, accurate credit decisions based on the limited information requested on our convenient credit application. We check publicly-available information, and have found that credit bureaus are the most accurate and reliable. We've also found that smaller businesses have payment practices similar to those of their principals.
Q - When is my first payment due and what is Interim Rent?
A - After Marlin confirms that the equipment has been delivered and we've received all of the required documents, your equipment supplier is paid. We then set up the lease contract on our billing system and an invoice is sent to you for the first payment due. This payment covers the following full 30-day period. Included on the first invoice is a charge for interim rent which covers the period between when we pay your vendor and when the first lease payment is due.
Q - What is the Documentation Fee?
A - Marlin does not charge an application fee. We do, however, charge a nominal fee to compensate us for processing the lease documents and reimburse us for the fees incurred with filing UCC-1 financing statements that may be required in your state.
Q - Why am I required to insure my leased equipment?
A - Since the equipment is owned by Marlin Leasing and the lease is for its use, Marlin must ensure that if the equipment is destroyed or stolen, our lease will be paid off from the proceeds of the insurance policy. Most commercial policies cover leased equipment; all you need to do is have your insurance agent forward us an endorsement at no cost to you.
Q - What happens at the end of the lease term?
A - Unless you have chosen one of our fixed purchase option plans, you are responsible for returning the equipment in good working condition within 30 days of your last payment due date. If you do not return the equipment, you will be billed on a monthly basis. If you chose a fixed purchase option, you must exercise your rights within 30 days of the last payment due date.
Q - What taxes am I responsible for?
A - In most states and some local jurisdictions, Marlin is required to pay a use tax on each monthly payment. Since the lease payment was calculated in advance, and these rates change from time-to-time, this amount is billed separately. In certain states, the full amount of taxes is due at the inception of the lease, and the responsibility to do so falls on Marlin. In these situations, the tax is added to the equipment cost to calculate the monthly payment.
Many states also charge an annual tax on tangible personal property. Since Marlin is the legal owner of the equipment, we are required to pay this tax. (Our lease rate does not include these costs.) We pass this cost on to you in either a lump sum or spread over 12 monthly payments. Again, these taxes change periodically and are not included in the calculation for the base monthly payment.
Q - What are the tax benefits associated with leasing?
A - From you, the lessee's viewpoint, you may be able to deduct the monthly lease payment as a business expense on your tax returns. You should seek specific advice from your accountant. From Marlin's perspective as the lessor, unless you chose a $1.00 buyout option, you agree that Marlin holds legal title to the equipment and is entitled to any tax benefits associated with ownership.