Below are some Frequently Asked Questions. If you require additional assistance, please don't hesitate to call us at 888-MY-AMPAC (888-692-6722) or send us an e-mail at email@example.com.
What is a Lease?
A lease is an agreement by a customer (called the Lessee) to pay a monthly payment for a specific amount of time for the right to use property owned by the lease company (called the Lessor). The customer is responsible for insurance, maintenance, and all other costs of ownership.
Leasing offers fixed payments; provides financing for 100% of the equipment cost; allows businesses to pay for equipment while it is being used to generate income; and conserves both working capital and bank lines of credit. For more information, see Benefits of Leasing or listen to our Benefits of Leasing podcast.
Who can lease?
Creditworthy corporations, proprietorships, LLC's, partnerships, and other business entities who will use the equipment for business or commercial use. American Packaging Capital, Inc. does not lease to individuals for personal use.
What kinds of equipment can I lease with American Packaging Capital?
We specialize in new packaging and processing equipment.
Can I lease equipment supplied by a private party?
We understand that your best equipment option doesn’t always come from an equipment supplier. However, at this time we provide financing only for new equipment supplied by equipment manufacturers or their distributors.
Can I lease equipment from multiple suppliers?
Yes, you have the flexibility to lease your equipment from multiple vendors.
Do you finance equipment that will be located outside of the United States?
Not at this time.
How do I apply for a lease?
Applying for a lease is easy. You can print a credit application from our website and fax it to us. You can also request that an application be e-mailed to you.
What is the minimum lease amount?
$5,000 is our minimum lease amount.
What types of leases are available?
We offer $1.00, 10%, and Fair Market Value lease purchase options for 12-, 24-, 36-, 48-, and 60-month terms. For more information, please see Purchase Options or listen to our Purchase Options podcast.
How are lease payments calculated?
The monthly payment is based on the term of the lease, cost of the equipment, and the type of lease you choose. You can generate a budgetary lease pricing proposal instantly by using our Payment Calculator.
What factors are used to determine creditworthiness?
Type of business, time in business, financial condition, banking relationships, comparable borrowing references, and Dun & Bradstreet or other credit bureau ratings. For more information, please listen to our podcast, Basics of Business Credit.
How long does it take to approve my lease?
Lease applications can be approved within one to three business days of our receiving complete information.
What is the process for leasing equipment?
You fill out a simple, one-page credit application. In certain instances, other financial information may be required such as financial statements or tax returns. (For more information about the credit process, please listen to our, Basics of Business Credit podcast.) The credit information is reviewed, and upon approval lease documents are prepared and sent to you for signing. Once we receive your signed documents and standard advance payment, we issue a purchase order to your equipment vendor. Upon equipment delivery and acceptance by you, the equipment is paid for and the lease commences. For more information, please listen to our podcast, Lease Process.
What are the up-front costs for a lease?
Usually, just the first and last monthly lease payments. Unlike a down payment for a purchase, these payments are smaller and are applied to your total lease payments. In addition, a nominal documentation and UCC filing fee is required for processing the lease documents. (We refer to this as an “advance payment”.) We do not charge an application fee.
What happens once my lease is approved?
After lease details are confirmed with you, lease documents will be sent (overnight) for your signature. For your protection, we do not e-mail lease documents and require that they be mailed back to us with original signatures.
When will the Purchase Order be issued to the vendor?
Once we have received signed documents and the standard advance payment from you, we will issue a Purchase Order to the vendor.
When does my lease begin?
Your lease will commence after equipment delivery and we are in receipt of the following: complete lease documentation, your signed authorization to release the funds, and the invoice from the equipment supplier.
Does the lease document provide information about my purchase option?
Yes, the purchase option is prominently displayed on the front of the lease agreement with details on how to exercise the option in the terms and conditions of the agreement.
How do I obtain a lease payoff quote?
Due to the volume of payoff requests, we ask that you e-mail your request, along with your lease contract number and contact information, to firstname.lastname@example.org.
Is there a pre-payment penalty?
No, there is no pre-payment penalty on our equipment leases. You can pay off your equipment lease at any time without penalties. However, you will be required to fulfill the obligation for the entire lease term. For example, if you choose to pay off a 60-month lease after having already paid 48 months, the payoff will require payment on the balance of the term (the remaining 12 months) plus the Purchase Option.
Can the lease be cancelled?
The lease is non-cancellable.
What about insurance?
For your protection, you are required to maintain and provide proof of property and liability insurance against loss, theft, damage, or destruction of the equipment.