Question:  How Long Does the Application Process Take?

Answer:  In general applications take from 3 business days to 2 weeks depending on the financial condition of your company and the choice of equipment to be purchased.

Question:  Can the application process be sped up?

Answer:  For deals that require faster application processing we can sometimes accommodate those needs, however, there is little or nothing that can be done over a weekend.  We must be able to communicate with banks and other financial institutions as well as the references you have included and that can only be done during business hours.

Question:  What is the interest rate you charge?

Answer:  There is no set interest rate until we review your application.  Interest rate is determined by your credit worthiness, years in business (or lack thereof), the background and experience of the principals, and the type of equipment being leased.  Rates can be as low as 6% or as high as 20%, and sometimes more.  In addition the total lease amount plays into the rate determination as our costs are quite high to do the credit and background checks for those with poor or little credit history.

Question:  What new equipment is eligible for Lease?

Answer:  Pretty much any Professional or industrial grade Audio, Video, Post-Production, Lighting, Digital Cinema, or industry specific vehicles such as mobile units or lighting support vehicles.

Question:  What used equipment is eligible for Lease?

Answer:  Used equipment is subject to a very strict review.  Typically it must show that it has a future life of at least 7 years for a 5 years lease, 5 years for a 3 year lease, and 3 years for a 1 year lease.  These numbers are not written in stone and are subject to review of the equipment being considered.

Question:  What is the longest and shortest Lease term?

Answer:  The term of the lease can be as short as 1 year, or as long as 10 years.  The most common lease terms are 3, 5, and 7 years.

Question:  Who owns the equipment I am leasing?

Answer:  A lease by definition means the owner is the leasing company until you complete the terms of the lease. Then you have the option to buy the equipment and own it or you can simply return the equipment, and be rid of it so you can replace it with a newer item. 

Question:  What if I want to end the lease early?

Answer:  Most often leases can end early if you make full and complete payment for the amount due as of the date of termination, which includes interest accrued to that date, plus the principal amount due.  There are some leases that cannot end early due to tax implications on the part of the lender, or you may be subject to termination fees.

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

Answer:  There are three ways to end the lease.  The first is to buy the equipment at a price that is determined before the lease is signed. The second is to extend the lease 1 to 3 years depending on your situation and the current life expectancy of the equipment.  The third and final is to turn over the equipment to BROADCASTLease and we are responsible for the sale or disposal of the asset.

Question:  Do you lease vehicles?

Answer:  If the vehicle is a production vehicle, such as a generator trailer or truck, a production trailer, a mobile unit, a crew van, a camera truck, a grip & electric truck or trailer, etc. then it may be eligible.

Question:  What parts of the United States do you offer leases in?

Answer:  We offer leases for television and digital cinema equipment in any of the 50 States.  We do not offer leases in the US territories and Alaska and Hawaii may be subject to restrictions.

Question:  Are there any application or advance fees to process the application?

Answer:  In general, no.  The exception is if the lease amount is below $5,000 to $10,000.  At these levels it costs too much to process the lease application without some additional fees.  

Question:  Do I have to submit my personal financial information?

Answer:  If your company is under three years old you most likely have to.  If the company is 3 to 5 years old with poor or moderate credit you will also have to submit your personal financials.

Question:  What if I have a business or personal bankruptcy?

Answer:  If either of the bankruptcies was within the last 3 years, then it may be difficult to secure a lease for new equipment without additional collateral.  If you can put up either personal or company collateral, the chances are much better to secure the lease.  The collateral must be unencumbered, in other words it must be owned free and clear by you and it has a future value that assures the lender that their investment in you is secure.  If the lease is for used equipment your odds become much better, however, you are still subject to collateral requirements, however, the total value will be significantly less than if the equipment were new.

Question:  What are the interest rates?

Answer:  The actual interest rate cannot be determined until there is a thorough review of your business and credit history.  In general rates vary from 6% for companies with superb credit to 20% for companies with moderate credit.  The amount of additional collateral and if the equipment is new or used also play into the determination of the interest rate.  If the lease is 100% secured through other qualified assets, then the rate can be greatly reduced.

Question:  Why BROADCASTLease and not my bank?

Answer:  BROADCASTLease specializes in the Television and Digital Cinema production companies.  We know the true value of the equipment and it's long term prospects.  The Television and Digital Cinema industries are considered high risk by lenders and placing leases can be challenging unless full collateralized.

Question:  What is Fair Market Value in relation to Leases?

Answer:  To differentiate a lease from a loan and for it to qualify for tax deductibility on your returns, the equipment must have a fair market value at the end of the lease.  This fair market value helps determine what the total lease payment is, and what the equipment is most likely to sell for at the end of the lease. 

Question:  Can the Fair Market Value of the equipment be $1 at the end of the lease?

Answer:  Technically speaking, no.  The equipment is required to have a realistic fair market value at the end of the lease or a value pre-negotiated at the beginning of the lease.  If used equipment is selected, the purchase price at the end of the lease can be very reasonable.

Question:  Who owns the equipment?

Answer:  It depends on the type of lease.  If it is an Operating Lease, then the equipment is owned by BROADCASTLease.  If it is a Capital Lease, then it is owned by your company.

Question:  What about Equipment Depreciation

Answer:  With a lease, your Company does not get to deduct the interest or the deprecation expense on the equipment.  Instead your lease payment is fully deductible in most cases.  In general the Lease payment will result in more tax deductions than that of interest and equipment depreciation expenses.  And because Lease payments are the same amount each month, you are better able to budget your monthly, quarterly, and yearly costs for budgets.