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Q: Who is CalFirst Leasing?
California First Leasing Corporation ("CalFirst Leasing") is a nation-wide leasing company that provides cost-effective lease financing alternatives through customer-driven, service-oriented origination groups. CalFirst is a subsidiary of CalFirst Bancorp (Nasdaq: CFNB), a publicly traded, diversified financial services company with two primary businesses -- leasing of high-technology capital assets to businesses and organizations nationwide, and banking through an FDIC-insured national bank.
Q: Why should I lease property instead of buy it?
Leasing is flexible. A lease provides the use of equipment for specific periods of time at a fixed rental payment and allows you to be more flexible in managing your equipment needs.
Leasing is practical. By leasing, you are able to concentrate on using the equipment as a productive part of your organization without having all the concerns that come with property ownership.
Leasing is cost effective. Equipment may be expensive and some costs can be unexpected. When you lease, the risk of having to operate with potentially obsolete equipment is lower because you can upgrade or add property to meet your changing needs.
Leasing allows you to stay on the cutting edge of technology. Business managers have learned that the primary benefits of higher productivity and profit come from using property, without owning it.
Leasing helps conserve your operating capital. Leasing keeps your other lines of credit open, helping to better manage your balance sheet. You don't tie up cash in property and you can avoid costly down payments
Q: What is a lease?
A lease is a contract where one party (the "lessor") gives another (the "lessee") exclusive rights to use and possess its property or equipment for a specified period. The contract will require the lessee to make periodic payments (or "rentals") to the lessor for the use of the leased property.
Lease arrangements can be structured in a variety of ways to suit the needs of the lessee.
Q: How much will it cost?
Lease costs depend on factors such as the value of the property being financed, the frequency of payments, the length of the lease, and the end of term options.
Q: What types of property do you finance?
Just about any type of equipment and furnishings can be leased on highly favorable terms through CalFirst Leasing, including:
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Bar-coding/optical imaging systems |
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Broadcasting and CATV equipment |
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Computer hardware, software and services |
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CAD/CAM systems |
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Furniture and office equipment |
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Manufacturing and production equipment |
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Network cabling/routers and network services |
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Personal and laptop computers |
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Printers/copiers |
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Point of sale systems |
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Software |
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Telecommunications systems and related equipment |
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And more! |
Q: Can leasing help cash flow?
Increasing cash flow may simply mean reducing the payments you make each month. A lease can help increase cash flow because rental payments are usually less than debt financing payments. This represents real cash savings.
Q: What asset ownership plans affect the lease-buy decision?
Your plans for the property you're acquiring will affect your decision to lease or buy. You should answer the following:
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How long will you need the equipment? |
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What is its expected useful economic life? |
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Will new technology increase the chances that the property may become obsolete? |
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How will inflation affect its market value, particularly if you have to replace it? |
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What is the value of cash savings from leasing for your organization? |
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When the lease matures, will the expected value of the property be offset by benefits of lower rentals during the lease term? |
Q: How does leasing compare with other financing options?
Leasing is most advantageous for organizations with limited budgets and organizations wanting to protect against possible technology obsolescence. When acquiring new IT assets, payment choices include cash purchase, loans, lines of credit and leasing. Leasing compares very favorably with each of these other payment options in that it offers a combination of:
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Minimum initial cash outlay. |
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Fixed payments. |
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Ease of upgrading and adding additional property. |
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Avoidance of possible technological obsolescence. |
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Possible tax and accounting benefits. |
Q: Do you have a minimum transaction size?
Yes, our minimum transaction size is typically $50,000 - however, on a case by case basis exceptions will be made.
Q: What is the interest rate in a typical lease?
Since you are leasing and not taking out a loan to finance the purchase of property, there is no "interest rate" in the traditional sense. It's more like leasing office space or renting a movie on video. You're paying to rent the property, and the monthly payment is based on the type of leasing plan you choose, the terms of the lease, and the cost of the property.
Q: What should I do if I have problems with the property that I leased?
The supplier, manufacturer or vendor providing the property is solely responsible for service or warranty issues. However, CalFirst Leasing will assign to you any warranty rights we receive from the supplier, manufacturer or vendor.
Q: How do I find a contact at CalFirst Leasing?
Sales/Customer Service - If you have any comments or questions regarding our lease programs, please contact our Customer Service Department at custservice@calfirstlease.com or call us at (800) 496-4640.
WebMaster - If you have any comments or questions regarding our website, please e-mail us at webmaster@calfirstlease.com
Q: Can I upgrade and/or add equipment?
Yes. We're a service company and, in particular, our use of a master lease agreement easily facilitates annexing lease schedules for upgrades and/or adding additional property. Property, subject to our credit review and approval, can always be upgraded and/or added.
Q: What is the minimum and maximum term that I can lease/finance?
A typical initial lease term is 24 to 36 months. However, we will consider initial terms of shorter or greater length. In most cases, we rely on you to accurately assess the initial term that your company desires; however, based on the type of asset(s) being leased, your financial objectives, and our evaluation of your credit, we may suggest a maximum initial term of the lease.
Q: Can support and services be financed?
Yes. Fees for maintenance and support may be financed over the lease term. All leased property must be maintained while on lease.
Q: How much software, services or support can I finance?
It depends on a number of factors. Decisions are made on a case by case basis.
Q: Is CalFirst's leasing available to individuals?
CalFirst Leasing offers commercial leasing only to business customers, not to individual consumers.
Q: How do I set up a lease with CalFirst Leasing?
You may call us at our toll free number (800)-496-4640 or email us at sales@calfirstlease.com
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