BREAKING DOWN LEASE-TO-OWN ADVANTAGE

DEROTTO Leasing
Aug 6
3 min read

"The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge."

- Stephen Hawking

August already?! The team at DEROTTO hopes everyone’s enjoying their summer. As always, thank you to everyone for giving DEROTTO the opportunity to serve its equipment financing needs.

August seems to always be a slower month as we’re officially in the dog days of summer.

Generally, business owners are trying to catch their breath before the next mad rush, and August can be a good month to reassess.

Many business owners use this time to evaluate potential equipment purchases, so we figured this would be an opportune time to revisit how DEROTTO can be a valuable tool for your company.

Although we may sound like a broken record to some, we still get the question, “What does DEROTTO do?” – The easiest way to explain it is we’re similar to a mortgage broker, but for equipment! DEROTTO works with dozens of banks, credit unions, and private lenders to find the best possible equipment financing for your business.

Equipment is a broad term that means anything that is business oriented – large or small, new or used, software, hardware, typical equipment, the list is endless.

We believe DEROTTO can be your strongest ally when looking for used equipment financing. About 80% of what we do is used equipment (yes, that means private sales as well).

Many traditional banks won’t touch used equipment or if they do consider it, they make the process onerous. Some people think the rates might be higher with used equipment, however, DEROTTO has aligned itself with many lenders which specialize in this sector and offer bank rates or just below bank rates!

What does a lease transaction look like from start to finish?

First – DEROTTO prides itself on communication and customer service. At DEROTTO you will always talk with a person. Your experience at DEROTTO will be a breath of fresh air.
You call / email DEROTTO to let us know the equipment you are consider. (Kijiji ad, vendor quote, etc.). We request some information from you in order to secure an approval. This is often just a 1-page commercial credit application.
Once we receive your information, we submit your credit application to the lender(s) who best fit your situation to secure the best structure and rate.
Once approved, we present you with the approval details / options. If you want to proceed, we reach out to the seller / vendor to get their information so the lender can prepare the lease agreement.
After receiving the completed lease agreement, insurance confirmation, updated invoices from seller / vendor, it will be submitted to the lender to wire funds.

It’s a straightforward process. We often tell business owners to budget 5-7 business days to complete a standard lease transaction. DEROTTO moves as quickly as possible, but when working with 3rd parties, it can be out of our control.

Note: With private sales, the lenders always do a PPSA (Personal Property Security Act) search to insure there are no liens or encumbrances on the equipment and seller that could impede the transaction.

Common question:

We’d like to address a comment that pops up frequently. Business owners constantly say to us “I don't want to lease my equipment because I want to own it”. We want to squelch this common myth!

People say this because they don't understand. Other than the tax treatment and registration process, a loan or lease is basically the same thing. Both financing options require you to pay a set monthly payment over a specific length of time. Until you pay your obligation under either a loan or a lease you don't own the equipment. Once you've satisfied all of your requirements under the loan or lease, then you own it.