Can I get an on-line application for my website? Yes! First City Bancorp can set up the same on-line application technology for your web site and include a leasing calculator which may also determine promotions, terms and payments for your customers. Why should I lease my business equipment?

Among the many answers to this question, by far the best reason is capital preservation. Often times the entire amount of the purchase can be financed through leasing, leaving your cash position unaffected.

Are there any tax advantages to leasing?

Yes! Lease payments, that are structured properly, are normally 100% tax deductible as business expenses. Keep in mind that business expenses, such as lease payments, are paid from pre-tax earnings... not after-tax profits! Of course, you will want to consult your tax advisor for a final determination.

Can I save money by leasing?

When you lease your cash is retained for other business purposes. And, leased equipment is expensed over a fixed period of time. This allows for replacement before obsolescense so devaluation is either avoided or minimized resulting in substantial cash savings.

How will a lease affect my credit?

Leasing actually protects your line(s) of credit or borrowing ability. Leasing preserves your funds for other business requirements or opportunities.

Does my lease payment increase with time?

Unless structured otherwise your payment, for the term of the lease, is a fixed amount. Payments are not affected by market conditions or interest rate fluctuations. Unlike a bank loan a lease cannot be "called in" early. Of course the obvious benefit of a fixed lease payment is that it is a protection against inflation.

What happens at the end of the lease?

You have two options at the end of the lease. One of the most common is to simply return the equipment to the Lessor... no further obligation on your part. The other option is to purchase the equipment at a pre-negotiated or pre-determined price. It's that simple.

What determines the interest rate on my lease?

This is a lease, not a loan, therefore there is no interest rate. It is a fair market value rental.

What about equipment replacement?

Since leased equipment is expensed over a fixed period of time it is more easily replaced before obsolescence. Leasing is the best value for your equipment.

How will a lease affect my bookkeeping?

On your P & L lease payments are listed as expenses. In turn they are not shown as an asset or liability on your balance sheet. So, bottom line, there is no change in the way your bookkeeping is done.

What kinds of equipment can be leased?

First City Bancorp will lease new and used equipment. There are some items/equipment that cannot be leased for economical reasons... but you would be surprised at what we have leased. To make sure what you want to lease, is in fact, possible to lease, e-mail or call one of the many local contacts in your region.