A. Equipment leasing is a form of equipment financing. PEC USA, Inc. recommends a simple no money down (100% financing) $1.00 purchase option agreement for most of our clients.  When financing equipment with liability issues we offer and equipment finance agreement (EFA) which is essentially loan secured by the respective equipment.  This allows your company to allocate equipment with little or no money down, and build equity into the equipment during the term of the lease. Other forms of leasing including Fair Market Value Leases, Balloon Purchase Option Leases, Seasonal Payment Skip Leases, and Operating Leases. PEC USA Inc. will work with you and your financial team to provide the right equipment financing solution for your company.

A. PEC USA, Inc. will finance almost every type of equipment including graphics / printing equipment, machine tool / manufacturing equipment, material handling equipment, healthcare equipment (including medical, dental, laboratory, surgical centers, veterinarian), along with office furniture, and office equipment. PEC USA, Inc. will finance new, late model, and reconditioned equipment sold through an authorized equipment vendor.  PEC USA, Inc. will also gladly finance titled vehicles, new and late model used trucks, trailers, buses etc.

A.PEC USA, Inc. rates are competitive with every other equipment financing company. Every equipment financing or equipment leasing transaction is based on the same parameters:  Credit, collateral, term, and tax advantage. Our rates are derived from the dollar amount that your company borrows, and the length of time you take to pay it back (the Term) and in the rarer case the tax advantage should your company choose to structure an Operating Lease or  TRAC lease for rolling stock. Please use our Equipment Financing Calculator  to help budget your equipment financing needs, and call us with questions.

A. PEC USA, Inc. attempts to provide your equipment financing with no money down, no security deposits and limited documentation fees. Sometime because of compromised credit, older or “softer” collateral or in start up business situations down payments, advance payments, and higher documentation fees may be applicable.  Additional advance payments, security deposits and fees increase your rate, and reduce your return on investment we only charge them when we have to, based on the aforementioned criteria.  Please contact us with your company’s specific needs and we will give you our most accurate quote.

A. If you allow the equipment vendor to provide a financing package, the vendor is now controlling the equipment price, and your financing. This may make it difficult to assess the true "value" of the transaction. Also, this usually requires your company to share its financial information with both an equipment vendor and an equipment finance company. PEC USA, Inc. encourages a growing business to forecast its equipment needs, and work with PEC USA, Inc. to build a comprehensive, confidential, credit profile to pre-approve your company for all of your equipment financing needs. This pre-approval allows your company to maintain a confidential credit file with PEC USA, Inc. which allows your company to shop for cash prices on your equipment with no hidden fees. PEC USA, Inc. puts your company in a "pro-active situation" when shopping for equipment, rather than a "re-active situation."

A. A Fair Market Value Lease (FMV) has a lower payment than a $1.00 purchase option lease (when comparing like terms (months)), because there is an equipment residual at the end of the lease. With a $1.00 Purchase Option Lease your company owns the equipment at the end of the lease. An FMV Lease is solicited as a "tax favorable" lease to expense the monthly payment of your equipment. The reality is that a FMV Lease is a customer retention tool used by equipment vendors.

At the end of a FMV Lease, your company has several options: Purchase the equipment, return the equipment, or upgrade to new equipment. Your company is forced to make a decision. Returning the equipment is often convoluted, requiring the original operating manuals, sometimes the original shipping carton the equipment came in etc. All equipment damages and missing items are billed to your lease account, as well as a return freight charge (these charges add up fast). Another alternative is to purchase the equipment, however the residual equipment value that the FMV Lease was based on is probably much higher than the current equipment value so it doesn't make sense. The last option is to upgrade your old equipment with a new piece of equipment and jump into a new FMV Lease. Since your old piece of equipment is worth less than the projected residual, the difference in actual value is "rolled" into your next lease. The equipment vendor is in control in most cases, forcing your company into a new piece of equipment. Consequently, your next lease has less equipment equity and a higher monthly payment.  Using a one dollar purchase option lease or an equipment financing agreement allows you to control your equipment upgrades when you actually need them (please see more details FMV vs. EFA / $1.00)

A. Use a $1.00 Purchase option Lease, your payment will be a few dollars higher a month, but at the end of the lease, you own the equipment. At this point it is your decision what to do with the equipment, and in most cases running the equipment for another six to twelve months with no monthly payment before you upgrade yields a tremendous return on investment. When you go to trade your machine in or sell it on the open market, there are no hidden costs - you know exactly what is going on. Let us show your accountant the true advantage of a $1.00 purchase option equipment lease.

A. Yes, actually PEC USA, Inc. would prefer to develop a relationship with your accountant. This allows you to run your business, while PEC USA, Inc. and your accountant or business advisor, structure the most profitable equipment financing for your business.

A.The first step is to forecast your equipment needs for the next twelve to twenty four months (the PEC USA, Inc. Equipment Financing Calculator will help you forecast your payments). Once you know the type of equipment you need and the approximate cost of the equipment, PEC USA, Inc. will work with you and your accountant to gather your financial information and build a complete confidential credit package for credit review. Upon credit approval, you shop for your best "cash" deal on the equipment your company needs. Consequently, your company gets the best financing, the best price on equipment, and the highest possible return on investment!

A.Depending on your time in business, the amount of credit your business has established, and the industry you are in PEC USA, Inc., can provide financing up to $250,000 just on a completed and signed credit application.  $150,000 is a very realistic “application only” dollar amount for most established businesses.  If we need to build a full credit package on your company please see our request for financial information.

A. Applications up to $150,000 for an established business with standard credit are usually reviewed in one day.  Applications over $150,000 that do not qualify for “application only” will require review of financial statements or business tax returns.  If this information is presented for review with a credit application the credit review process usually takes two days.  Compromised credit transactions and start up businesses require a more in depth analysis and can take up to a week to review after a complete credit package is received.