What is the process for leasing equipment?
Iomnis reviews the credit information supplied on the lease application. Upon approval, the lease agreement is prepared and sent to the lessee. When the equipment is delivered, Iomnis pays the dealer and begins billing the lessee for the agreed upon lease payments.


Who can lease?
Any company, organization, municipality or association can lease equipment. Iomnis cannot lease equipment to an individual for personal use.


How are lease payments determined?
The monthly payments are based on the term of the lease, cost of the equipment, and the type of leasing plan the lessee chooses. The initial term of a lease runs from 12 to 60 months.


What factors are used to determine credit worthiness?
Type of business, length of time in business, financial condition, references from financial institutions, and D&B (Dun & Bradstreet) &/or other credit bureau ratings.


Who services or maintains the equipment?
The lessee is responsible for maintenance and receives the benefits of all "buyer" warranties.


Can the lease be cancelled?
Usually no, but the equipment can be traded-in for new equipment before the expiration of the initial lease’s term. The lease can be paid off early without penalty.


Is a down payment required?
A security deposit, usually equal to one or two month’s lease payments, is generally needed. This differs from a down payment in that the amount is typically much smaller and it is a true deposit which can be applied to the purchase price of the equipment at lease end, or returned if there are no other payments due.


Can the equipment be purchased at the end of the lease?
Yes! The lessee has the option of continuing to lease, purchasing the equipment, or returning it to Iomnis. At lease-end, Iomnis will also offer to finance the purchase price of the equipment for the lessee’s convenience.


Why lease?
There are a number of advantages that make leasing an attractive option for many firms. These include the fact that leasing offers fixed regular payments, provides financing for 100% of the equipment cost, allows businesses to pay for equipment as it is used to generate income, conserves both working capital and lines of bank credit, and it can offer certain tax advantages as well.


What about sales and use tax?
Iomnis will invoice the lessee for the appropriate tax.


What about insurance?
For the protection of both Iomnis, as owner of the equipment, and our lessees, who need the equipment for their business operations, we require that the equipment be insured. The lessee’s current insurance company can provide insurance.


Who should sign the lease?
The lease should be signed by an authorized officer of the corporation, by one of the partners of a partnership, or by the owner of a sole proprietorship.


From a tax perspective, how does the lessee account for the lease?
The lessee’s accountant should determine the best tax treatment for his client.


What Types of Companies Lease?
Lessees vary widely from small, one-person operations to Fortune 100 corporations, and the kinds of equipment being leased are just as diverse. Its not surprising that 8 out of 10 U.S. businesses use lease financing to acquire needed capital equipment. Over 65% of Fortune 1000 companies lease. Small businesses use leasing as a smart equipment acquisition alternative - one that helps them preserve valuable working capital needed for further growth. Whatever their market or size, as companies continue to face increasing competitive pressures, their need for a variety of financial services grows. Innovative, customizable leasing arrangements are an important part of this mix


What factors should I consider?
A lease is a financing agreement that is structured to meet your organization's special needs. To decide if leasing is the best option in your case, you should ask yourself these questions:

• What is the most efficient use of your cash flow?
• How long will you use it?
• What will your equipment needs be in the future?
• What do you intend to do with the equipment at the end of the lease.
• Your tax situation.
• The uses of your bank line of credit

Obviously, you will want to factor the cost of leasing into your evaluation. Generally, the cost of leasing is comparable to those of other financing options when looking at the whole transaction. Lease costs are figured differently from those of loans. Many leases take into account that the equipment is worth something at the end of the lease term. This is called its residual. Residuals are built into lease pricing, usually making the lease payments lower than a loan. To compare lease products, it is better to compare monthly payments than to try to compare loan interest rates with lease rates. On a cost-of-capital basis, leasing may be the least expensive option.

You also will need to determine what happens at the end of the lease. Your options can include returning the equipment to the lessor, purchasing the equipment at fair market value or a nominal fixed price, or renewing your lease.

No matter how the transaction is structured, leasing is a way of maximizing financial efficiency for both dealers and their customers. Our leasing programs are structured to help manufacturers; distributors and dealers offer their customers low monthly payments, simple financing documents, flexible credit terms, and one-stop shopping.