Answering your questions and finding solutions

Frequently Asked Questions

What do I need to provide to apply for a lease?

For transactions under $30,000.00 Catalyst requires a completed credit application and a description of the equipment. For larger deals we also take a look at financial statements.

What if we are a private company and do not like to share our information?

Catalyst ensures the privacy of all of your information. To that end we will provide you with a non-disclosure agreement that will bind us to that fact. We commit that we will only use your information for the sole purpose of obtaining an approval and your information will never be sold.

What types of equipment can be leased?

Catalyst has successfully leased the following types of equipment: computers, software, consulting, IT gear, manufacturing equipment, light industrial, printing equipment, furniture, trailers, restaurant equipment, agriculture equipment, used equipment and more.

How long does it take?

For deals under $30,000.00 it will take 2-3 hours for the approval. For larger deals it can take 4 hours to several days depending on the complexity of the deal.

What do we do next?

Catalyst will then put together the lease documents and send them to you electronically for signature. Once signed we instruct the Vendor to ship you the equipment and upon delivery we ask that you sign off and the lease commences.

What is a "$10.00 end"?

A $10.00 end purchase option is considered a Capital Lease where you own it at the end of the term for $10.00.

What is "Stretch" lease?

"A Stretch Lease" is a type of lease in which you have an early purchase option usually within 3 to 6 months prior to the end of the lease. If this option is not exercised you will enter the stretch period which will lead you to the end of the lease at which time you will have the option to 1) return the equipment 2) pay "fair market value" or continue to lease the equipment on a month to month basis.

What is a "fair market value" purchase option?

If your lease contains a "fair market value" purchase option, you can purchase the equipment at the end of the lease for its fair market value or you can return it to the funder at that time.

Are there different ways to structure the payments?

Payments are normally structured from 12 to 66 months depending on the asset as well as credit. They can be made monthly, quarterly or annually. There are several different options outlined above that determine what happens at the end of term.

Can I buy the equipment I am leasing?

Depending on the type of lease you have entered into you have three options:

  1. You can purchase the equipment.
  2. You can return the equipment.
  3. You can continue to lease the equipment on a month-to-month basis.

How will leasing impact my company?

Over 80% of businesses in North America lease some of their equipment because it helps them manage their cash flow and provides them with fixed monthly payments that cannot change. The general rule is that if something appreciates buy it, but if it depreciates lease it.

What deal sizes can Catalyst do?

Catalyst has the ability to deals as small as $1,000.00 and we have completed deals that are worth several million. We have the ability to offer a solution to virtually any size of transaction.

Can I lease equipment as a start-up?

Yes leasing is one of the most common methods for start-ups to finance some or all of their initial equipment requirements. We will need you to provide a Personal Guarantee as well a personal net worth statement that is outlined below.

What is a personal guarantee and a personal net worth statement? Why do you need them?

A personal guarantee is a way to improve the credit strength of your deal and reduce the credit risk. A personal net worth statement is usually used for a new business that lacks history or proper financial statements. It again will reduce the risk and provide you with the best rate possible.