What is a Lease?

A lease is a contractual agreement between two parties whereby the Lessor allows the Lessee to use the equipment for a specific period of time in exchange for a series of payments.

There are three parties involved in a lease transaction:

  • Lessee (customer)
  • Lessor (owner of equipment who will finance the lease)
  • Equipment Vendor  (supplies the equipment)

Roles of the Lessee/Lessor

Lessee:

  • Customer chooses equipment vendor
  • Customer agrees to all contractual obligations of the lease

Lessor:

  • Owner of the equipment (LCA) who purchases the equipment from the vendor
  • Remits payment to the vendor for the cost of the equipment
  • Bills and receives payment from Lessee

The Lease Process

Step One: Vendor proposes a lease solution to acquire necessary equipment and customer accepts

Step Two: Vendor has customer (lessee) complete a lease application and submits to LCA (lessor)

Step Three: LCA performs credit review on Lessee

Step Four: If approved, customer will complete all necessary lease documents

Step Five: LCA receives all necessary lease documents and approves delivery of equipment

Step Six: Equipment is delivered and accepted by Lessee

Step Seven: LCA pays for the equipment and commences Lease

 

For more information contact:

Martin Murphy

Lease Corporation of America

3150 Livernois Road, Suite 300

Troy, MI 48083

Office: 800-800-8098

Fax: (248) 743-3140

Email: mmurphy@leasecorp.com

Website: www.leasecorp.com