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Small Business Leasing FAQs

With lease financing from Regions Bank, you will have a flexible, cost-effective way to obtain everything from office furniture to heavy equipment.

 

 

 

Why should I lease equipment rather than buy?
Leasing can be a smart way to go because it lets you:

  • Save with 100% financing.
    Your company will realize an immediate cash savings by not having to pay a large down payment to purchase equipment. In fact, leasing permits 100% financing and the term of the lease can be matched with the useful life of the equipment.
  • Enjoy fixed monthly payments.
  • Conserve working capital and improve cash flow.
    Once again, when you lease you'll avoid dipping in to your working capital and disrupting your company's cash flow, thanks to a minimal down payment and fixed monthly payments
  • Improve production.
    Making sure your company has the equipment it needs is key to maintaining and increasing production.
  • Enjoy potential tax savings.
    We all know how complicated tax issues are, but in a nutshell, leasing can potentially help your company with tax deductions from pre-tax earnings and avoidance of the Alternate Minimum Tax. It can also help you avoid restrictive covenants as well as certain types of loan and bond documents. Consult your tax advisor for information regarding how leasing will affect your individual tax status.

 

 

What types of equipment can I lease?
Basically, if you need it, you can lease it. To be a little more specific, some of the most commonly leased business equipment includes - but is not limited to - the following:

  • Industrial, Construction, and Manufacturing: Fork lifts, cranes, dozers, loaders, machine tools
  • Transportation: Tractors and trailers, aircraft, trucks, automobiles
  • Office Equipment: Furniture, copiers, fax machines, fixtures
  • Computers: Mainframe, industrial and imaging systems
  • Communications: Telecommunications, broadcast, and switching equipment
  • Medical: CT scanners, MRI systems, X-ray equipment and fixtures

 

 

How does leasing work?
Here's a general overview of how the process works:

  • Step 1: Determine Your Needs
    Your Regions Leasing representative will walk you through this part of the process to help you determine what equipment you need and how to best put the power of leasing to work for your company. You'll consider issues including
    • Will you need the equipment for three or more years?
    • What do you intend to do with the equipment at the end of the lease - replace, renew or purchase?
    • How will leasing affect your company's cash flow and tax situation?
    • What are your company's plans for future growth?
  • Step 2: Select Equipment and Establish General Cost Range
    You'll be asked to select the equipment you need and to determine an overall price range. Armed with this information plus the answers to the questions posed in step one, your Regions Leasing Representative will help you determine which lease option will best meet your company's needs. For example, you may lease one piece of equipment at a time or many items on a single lease. Based on future needs, you may opt for a Master Lease, which will allow you to continually add equipment to the lease without having to execute a new contract each time. Once all this is determined, the lease paperwork will be drawn up.
  • Step 3: Sign the Lease
    By signing the lease, you assign your purchase rights to Regions, who then buys the equipment on your behalf and as specified in the lease.
  • Step 4: Take Delivery
    When the equipment is delivered, you'll make sure it meets all specifications outlined in the lease, sign a formal acceptance, and the lease will then take effect.

 

 

What type of leases are available?
Below is a list of the most basic kinds of leases and their most important advantages. Consult your tax advisor for information regarding which lease best suits your individual needs.

  • True Lease: Qualifies as a lease under the Internal Revenue Code, thus allowing you to claim rental payments as tax deductions and allowing Regions, or the owner of the equipment, to offer lower rental payments to you.
  • Trac Lease: A tax-oriented lease of over-the-road vehicles that contains a stated purchase at the end of the lease subject to a Terminal Rental Adjustment Clause (TRAC). It provides a lower lease payment than a traditional lease, and the final payment is stated to reflect the amount realized by Regions on the sale of the equipment at the end of term.
  • Lease Purchase: Allows you to take depreciation deductions on the leased equipment. Delivers 100% financing.
  • Lease line: Through a Lease Commitment Agreement, a predetermined amount can be drawn upon to fund single or multiple vendors over a period of time.

 

 

Why should I choose to lease from Regions?
Regions has the service, experience and strength you can rely on.

  • Service. Our goal is to make sure you get the equipment, the lease, the payment and the personalized attention you want and deserve. And that's why we go the extra mile to keep you informed, to help you make smart financial decisions, to do the extra legwork, and basically make sure your Regions Leasing experience is totally positive.
  • Experience. We've been doing this for some time, which means you can depend on us to make all your options available, to get you the best deal, to make sure you're paying a fair price, and to help your business grow, today and well into the future.
  • Strength. Regions Leasing is part of Regions Financial Corporation, one of the strongest banking companies in America. Knowing this, you can rest assured you'll get the integrity, service and financial support only such an institution can offer.