Frequently Asked Questions

What is the rate?

Leases are not quoted in terms of rates, but rather terms.  The micro ticket equipment lease terms include a payment amount and duration.  The terms are determined by many factors, among which are credit history and size of the purchase.

Is there a pre-payment penalty?

There is no “pre-payment” penalty since an equipment lease can be paid off at any time without any extra charge.  However, the full amount of the remaining lease payments is due, even if paid early, prior to the purchaser taking possession of the asset.

What is the term?

The term can vary depending on dollar amount and risk factors.  Long terms would not make much sense for low dollar purchases.  High risk would also indicate a shorter payment term.

What is the qualifying credit rating?

Micro ticket equipment leasing is available to businesses with C and D credit ratings.  Higher rated credit will generally receive more favorable lease terms.  The objective of micro ticket equipment leasing is to qualify every applicant, if at all possible.

Is there a personal guarantee required?

As a general policy, no personal guarantee is required with micro ticket equipment leasing.  However, in extreme risk situations, a personal guarantee may be required to make the terms manageable for the lessee.

How long must a company have been in business?

There is no “duration in business” qualifier for micro ticket equipment leasing.  Most applicants we approve have been in business less than two years.  Many of our approved leases are for new startup companies.

If I already have one lease, can I do another for more equipment?

Yes.  As long as a company is making its payments on time, we are happy to extend credit for additional leased equipment.

What happens to the equipment at the end of the lease?

At the end of the lease, the lessee may take title to the equipment for a $1 purchase price.

If I pay on time, will this help my credit rating?

Yes, your prompt payments are report to credit reporting agencies by the lessor.  This will improve a company’s credit rating over the life of the lease.

What kind of equipment is eligible?

Virtually all tangible assets costing between $500 and $20,000 are eligible, with a few specific exceptions.  Your Compound Profit Advisor will provide you with a list of the few exceptions.  If an item is not yet on the “approved items” list, we will work to get it added for you.

What information is required to apply?

General corporate information is all that is required in the application.  Financial statements and tax returns are not required.  The lender merely needs sufficient information to verify the legitimacy of the business applicant.

How long does the approval take?

Approvals are usually very quick.  Compound Profit personnel will check with a number of potential lenders to obtain the best terms for your lease.  A term sheet is usually provided within 1 business day of faxing the signed application.

If I apply, am I required to do the deal?

An application does not obligate anyone to accept the terms offered by the lender.  If the terms are unacceptable, Compound Profit can work with you to find alternative financing means, other than micro ticket equipment leasing. 

What if I don’t know where to get the equipment I need?

Compound Profit Advisers have numerous vendors of equipment in a variety of industries that offer micro ticket equipment leasing.  In addition, if you have a preferred vendor in mind, Compound Profit can make arrangements with virtually any vendor to offer micro ticket leasing.

How much money to I pay up front?

Unlike financing, leasing funds 100% of the purchase price, including installation, delivery and setup costs.  Your initial payment is a $75 processing fee plus your first month lease payment.  No additional funds are due until your second lease payment 30 days later.