Hotel Online  Special Report


8


Commonly Asked Questions & Answers
on Leasing
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RCR Capital Leasing, Inc. understands your business needs. We'll work closely with you and respond promptly to your requests. We approach each transaction with individualized care and personal service - taking the time needed to structure a lease that meets your needs.
Contact:

[email protected]
215-340-1090 


1) What is the equipment leasing process?

The one page application to be completed signed and faxed (mailed or e-mailed) to RCRCapital.com.  Normal turnaround time for a credit decision is 24 hours (or less) depending upon response by the applicant�s credit references provided.

Once an approval is granted and the applicant accepts the terms, documents are sent via overnight courier for signature. The completed documents and advanced payment check are returned via prepaid overnight courier to RCR Capital, Inc. Once received, we issue a purchase order to the vendor who is paid upon delivery and verbal acceptance by the end user.

2) What happens at the end of the lease?

That depends on the type of lease. Some leases have a $1.00 Purchase Option or a guaranteed purchase for a specified amount (usually 10%). In either of these cases, the lessee owns the equipment at the end of the lease for a specified amount.

For Fair Market Value Leases, the end user has the option of keeping the equipment by paying the appraised amount (generally 10%) or returning the equipment to the Lessor. The appraised amount is often negotiable.

3) Can I buy out my lease early?

Most, if not all, leasing companies allow for an early termination by providing some discount on the total of the remaining payments. The amount of discount will vary depending on the term, type of lease contract and current rate environment.

4) Is my monthly rental payments tax deductible?

End users can make their own decisions, but generally, the full payment to be written off as an expense. In all instances we recommend that you consult with your tax advisor for advice on how to treat your lease.

5) Who do I turn to for warranty service?

The vendor (or original supplier of the equipment) will provide all warranty service; the leasing company is not responsible. The warranty is handled just as if the equipment was paid for directly by the end user.

6) What interest rate am I paying?

There is no interest attached to the lease, as it is a rental agreement. If you are looking at the difference between the equipment cost and the total of the monthly payments as �interest�, then this varies with the term, cost, lease type (residual structure) and credit of the end user.

7) What if I want to sell the equipment before the end of the lease?

This can be done but the lease must first be paid off in full to release the lien that was filed on the equipment.

8) When do my lease payments start?

Generally, after making your initial lease payments at closing, your next lease payment is due 30 days after the lease is funded (or when your supplier is paid).



Please feel free to contact us with any additional questions you may have about our services.

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Contact:


RCR Capital 
Hospitality Sales Office 
63 East State Street 
Doylestown, PA  18901 
215-340-1090 
[email protected]
http://www.RCRCapital.com


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