Frequently Asked Questions
  • Why lease
    Leasing can help your company's financial picture by matching the terms of the lease with the useful life of the equipment. It can also provide 100% financing which in turn enhances your company's financial position. Leasing can require less in capital dollars than any other method of financing and saves your cash and other established credit lines for more profitable uses within your business.

  • Why lease with NLFC
    Many solid reasons including faster turnaround than most banks and is an additional credit source for you! A significant percentage of our business is with repeat customers, some of which have 30+ leases with NLFC over the years. Leasing or financing is available for businesses of every size including public corporations, municipalities, local and federal government agencies and not-for-profit institutions. Consistent ownership that is steadfast in its commitment to integrity, honesty and the best service in the industry. Financial strength and performance that have earned Dun and Bradstreet's highest 3A1 credit rating. Recipient of the Better Business Bureau's highest Award for business ethics. And peace of mind knowing that you are working with NLFC -  the oldest continually-owned, privately held leasing and finance company in America.

  • How does the leasing process work?

    1) You decide the equipment or titled vehicle needed and the vendor.

    2) A one-page application is completed and submitted either by phone directly with an NLFC representative, by fax or snail mail.

    3) Terms of the lease are agreed upon.

    4) Lease is signed either in person with an NLFC representative if local, or sent by overnight courier to clients in states other than New York or Pennsylvania.

    5) Completed documents and deposit are received by NLFC and reviewed for accuracy.

    6) NLFC purchase order is promptly sent to the vendor authorizing delivery of the equipment or titled vehicle selected.

    7) NLFC verifies delivery with each client, pays the vendor invoice and the agreement commences. See Vendor Testimonials and Lessee Testimonials.

  • What interest rate am I paying?
    There is no true interest rate attached to a lease since it is basically considered a rental agreement for tax purposes. A "factor" is used in calculating the lease payment and may vary because it is based on the equipment cost, term, buyout option and credit criteria of each customer. Overall however, leasing offers some the most competitive financing available. In some instances, when lease tax savings are considered the interest rate can even be negative -- meaning your tax savings are greater than interest paid. See Example

  • Are my monthly payments tax deductible?
    Unlike borrowed funds, lease rental payments are normally treated as a business expense that comes out of your pre-tax income instead of after-tax profits. This means that your lease payments can be tax deductible as a business expense. As individual situations can and do vary, NLFC suggests checking with your tax consultant to get the exact benefits of your equipment lease.

  • What are the end of the lease options?
    This will depend on the type of Purchase Option you chose at lease inception (One dollar option or 10% option.. If you chose a $1.00 then $1.00 is what you pay to own the equipment, however payments may not be tax deductible. If a 10% purchase option was chosen, your purchase price is equal to 10% of the original equipment cost and payments fully tax deductible. NOTE: 10% option leases will have lower monthly payments than a $1.00 option lease.

  • May I close out the lease early?
    Yes, however we offer no discounts and charge no early pay off penalties.

  • More Questions?
    Please contact us today with any additional questions you may have.