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Financial Services
We offer a complete package of convenient financial services that makes it easy for you to own computer hardware, networking products or equipment or other equipment.

About Leasing
A lease is a contractual arrangement in which a leasing company (lessor) gives a customer (lessee) the right to use its equipment for a specified length of time (lease term) and payment (usually monthly). Depending on the lease structure, the customer can either purchase, return, or continue to lease the equipment at the end of the lease term.

Tax Structures
For the business owner, there are two primary types of leases that determine tax benefits: 1) operating or true leases and 2) capital or finance leases. A lease is usually considered a true lease if, at the end of the lease term, the lessee has the option to purchase the equipment at fair market value (FMV). Conversely, if the lease agreement contains a bargain purchase option, such as $1 or 10 percent of the original purchase price, it would be treated as a finance lease. Always consult a tax advisor to determine lease treatment and for advice on which lease structure is most appropriate for you and your customers.

Types Of Leases
$1 Buyout: At the end of the lease term the lessee can purchase the equipment for one dollar. This structure is ideal if the useful life of the equipment is expected to be greater than the lease term. A $1 buyout lease normally qualifies as a capital lease or finance lease. (Consult a tax advisor to verify proper tax and accounting treatment.)

10% Buyout: Under this structure, the lessee has the option to purchase the equipment for 10% of the original cost at the end of the term and the payment is lower that that in a $1 buyout lease. This structure is ideal is the useful life of the equipment may be longer than the lease term and the lessee wants a fixed purchase price. A 10% buyout lease usually qualifies as a capital or finance lease. (Consult a tax advisor to verify proper tax and accounting treatment.)

Fair Market Value Buyout (FMV)
This lease structure normally provides the lowest lease payment and normally qualifies as an operating or true lease. (Consult a tax adviser to verify proper tax and accounting treatment.) At the end of the term, the lessee has the option to purchase the equipment for its fair market value as determined at that point in time. This structure is ideal if the expected useful life of the equipment is equal to the lease term, the lessee desires the lowest monthly payment possible or the lessee desires the maximum tax benefits.

Under all types of leases the lessee as the option to purchase the equipment, return the equipment or extend the lease at the end of the term.
Comparing Financial Strategies

MCP Leasing Loan Cash
Interest Rate Fixed Rate Fixed or Floating None
Speed of approval Under $100K, usually 4 hours or less.Over $100K, usually 48 hours or less Days to weeks Instant
Down Payment Typically only 1 or 2 payments upfront which are applied to the balance 10%-20% of total amount 100 %
Financial Statement Not required for transactions under $150,000 Usually required regardless of amount requested None
Tax Benefits Lease payments are 100% tax deductible when shown as operating expense Depreciation taken over life of equipment Depreciation taken over life of equipment
Equipment Obsolescence Leasing can prevent obsolescence with tech refresh End user owns equipment End user owns equipment

Frequently Asked Questions What kind of equipment can I lease?
Mainline Computer Products leasing can fund any kind of equipment, including software only.

Are there items I can't lease?
Yes, but very few. Some software companies do not permit the temporary assignment of their license agreements, which is exactly what leasing is. Although exceptions can be made, we suggest leasing only if the cost of your equipment exceeds $2,000.

How do I apply for a lease?
You can request an application by clicking below or contact a Mainline Account Manager at (800) 686-5312, who can fax you a leasing application.

What is required before my order will ship?
We will send you lease documents that cover the legal aspects of your lease. You should read them carefully and sign them. We can accept a fax copy of documents you sign in order to ship but may require the originals to be returned. Contact your Mainline Account Manager for complete details at 800-686-5312.

How much does leasing cost?
The actual rental payment depends on the equipment you select and how long you want to pay for its use. Leasing is not expensive. The savings in accounting costs, better use of capital, and the revenue realized on additional business will justify the rental payments

How is the monthly payment calculated?
The monthly payment is determined by a Lease Rate Factor, which is a percentage amount used to calculate rental payment to a lessor for the use of assets. The lease rate factor is multiplied by the equipment cost to determine the monthly payment.

How long do I have to wait to know the outcome of my financing application?
At Mainline, credit decisions on deals under $100,000 are guaranteed within 4 hours and usually received within minutes. Decisions on deals over $100,000 are guaranteed within 48 hours of receiving a complete credit package.

Do I need to supply financial statements?
For transactions totaling less than $50,000 all that is usually required is a completed application. For larger transactions financial statements will be required. However, if you are a public company or government entity, financial information may be available from public sources.

Why is a personal guarantee required for some company leases?
Many criteria affect personal credit, including prior bankruptcies and payment history. When the credit risk is high, a personal guarantee can help secure the investment. A personal guarantee may lower the lease rate because it lowers the risk.

Is there a minimum lease amount?
The minimum deal that we can fund is 1,000 dollars.

When does the lease start?
The lease starts upon delivery and acceptance of the equipment by you.

What are my responsibilities when leasing?
You must maintain the equipment, obtain insurance, make the monthly payments, and, if you decide to return the equipment at the end of the lease, return it in working order.

What happens at the end of the lease?
A Leasing representative will contact you prior to lease expiry and explain the options. Depending on the type of lease you chose, (FMV, 10% or $1 buyout), you will have to make arrangements to return the equipment or buy it.

What do I have to do if my equipment is defective?
All provisions are handled through standard Mainline Computer Products defective policy procedures.

Is Insurance required for the equipment?
Generally insurance is required on every lease. Most business insurance covers equipment leases.

Can I end my lease early?
Yes. However, a lease is a legally binding contract and our Leasing Partner will require you to fulfill the financial obligations of the lease. Your Mainline Account Manager may suggest other leasing options.

Can I include services such as configuration, consulting and training in a lease?

Who do I contact for help?
For support, call the Mainline Sales Team at (800) 686-5312.
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