Questions About Leasing

Q. What are the advantages for a Customer to lease?

A. Convenience: A one page credit application is all that is needed to initiate lease amounts up to $100,000. In contrast, because of FDIC regulations, banks require a full financial package in order to extend credit. Leasing also conserves the customer's cash and bank lines for payroll and expansion.

Q. What are the advantages to the Distributor?

A. Higher margins and more sales: Salespeople that offer leasing find it easier to close sales. Also, margins increase when Customers lease. This is because Customers focus on a monthly payment and not the invoice amount. Customers can easily justify monthly lease payments through the efficiencies of new equipment.

Q. What suggestions will help a Salesperson to sell more equipment?

A. Go online to www.amano-credit.com and generate a lease quote for every Customer. Offer the option to the customer and it will open doors.

Q. What are the steps to process a lease?

A.

1. The Distributor submits the application to Amano.
2. Once approved, Amano e-mails / faxes the approval back to the Distributor.
3. The distributor then faxes an invoice / equipment description with serial numbers to Amano.
4. Amano prepares lease documents and forwards them to the Distributor.
5. The Salesperson gets the lease documents signed and delivers the equipment.
6. The Distributor then forwards the documents to Amano for immediate payment.

Q. How quickly does the Distributor get paid?

A. Once the documents are received and the equipment delivered. Amano pays the Distributor that same day.

Q. How much credit can be extended before Amano needs the Customer's financial statements?

A. Typically, Amano does not need financial statements for dollar amounts up to $100,000. This policy streamlines the process and makes leasing additional equipment easy.

Q. What is the documentation fee?

A. Amano Business Credit does not charge an application fee. We do however change a nominal documentation fee, ranging from $125 to $200, depending on lease size, to compensate us for processing the lease documents and to reimburse us for the fees incurred.

Q. Is Amano responsible if there are problems with the leased equipment?

A. No, the customer is responsible for negotiating any service or warranty issues. Amano Business Credit's role is to assist the Customer in financing the equipment, the same way a bank would finance a car.

Q. What is the interest rate on the lease?

A. Since the Customer is leasing and not taking out a bank loan to finance the purchase, there is no "interest rate" as we usually think of one. It is more like renting office space. The customer is paying to rent the equipment, with the monthly payment amount based on the type of leasing plan they choose, the terms of the lease, and the cost of the equipment.

Q. Why is the Customer required to insure leased equipment?

A. Much like a leased automobile, in the event the vehicle is stolen or destroyed, the lessor is paid off by the insurance company.

Q. What happens at the end of the lease term?

This is determined according to the type of lease the Customer has entered into. There are basically three programs. They include:

1. $101 Purchase Option: The Customer pays an additional $1.00 at the end of the end of the term in conjunction with the $100 closing fee.
2. 10% Purchase Option: In this case, the Customer pays (at the end of the term) 10% of the original selling price.
3. Fair Market Value (FMV): The customer may return the equipment or purchase it for the Fair Market Value.

Q. Are there any restrictions on Soft Costs?

A. No, the Customer can include such things as start up supplies and maintenance contracts in the original lease.