What has to happen before I can receive the equipment I have leased?

HCFC makes the leasing process simple and efficient. We will assess the credit information supplied on your application. One of our expert lease advisors will then review the process and documents with you and/or your vendor. We will send you lease agreement documents for review. Once documents are signed and returned, your equipment is released.

May I end my lease early?

Yes, you may end your lease early. However, an early buyout is based on balance of payments plus taxes and any outstanding payment arrears. We always attempt to maximize your options with equipment upgrade programs.

What about insurance?

Insurance is required on all lease equipment to protect both the lessor and the lessee. If you do not have business insurance, we can include insurance protection into your lease for a nominal fee.

How will I be billed?

All payments are automatically debited from your bank account on a monthly basis. A void cheque is required for the account from which the payments are to be taken.

If my company is new, can I still lease?

Yes, you can still lease pending credit approval and the completion of all required documentation. A security deposit may be required. Contact one of our expert lease advisors for complete details.

What effect does leasing have on my bank line of credit?

With a lease, no money is technically borrowed, so your bank line of credit remains unaffected.

What if the equipment I receive has problems?

You will be contacted when your shipment arrives to ensure that you have received what was ordered. After receipt of the equipment, the vendor will support or replace equipment as specified in the warranty.

Who owns the leased equipment?

The leasing company, as lessor, is the owner of the leased equipment until you purchase it at the end of the lease or buy out the lease early.

Who services/maintains the leased equipment?

Servicing and maintaining equipment is the responsibility of the lessee (you). If the dealer or manufacturer provides for servicing / maintenance in the contract, it’s still your responsibility to ensure that you take advantage of those terms. Once the equipment is out of warranty, you are responsible for ensuring that the equipment remains in good working order.

Can I still lease equipment even if I have already purchased it?

Yes. This is known as a leaseback, or a sale-and-leaseback. HCFC will consider this funding arrangement and will base the structure of the deal on the asset type, value, term, and use of funds.

Are leases tax-deductible?

For tax purposes, operating lease payments are a tax-deductible expense for the lessee (the customer), and the lessor (owner of the equipment) claims Capital Cost Allowance (CCA). HCFC encourages lessees to speak directly with their accountant to determine the best option(s) for them.

What about sales tax?

Applicable sales tax (HST, PST) is added to monthly lease payments.

I have changed banks. Who should I contact about my pre-authorized payments?

There are two options:

1. Fax a new void cheque to 705.443.8158 along with a cover letter addressed to HarbourEdge Commercial Finance Funding Dept. Please also be sure to include the relevant account/lease number as well as the lessee name.

2. Scan and email a void cheque to [email protected], including the information outlined above.

In both cases, please keep in mind that all account changes need to be finalized at least 10 days prior to your next month’s payment to avoid any interruptions or missed payments.

What are the insurance requirements?

A HCFC representative will provide your insurer with a confirmation form to complete and return to us. This will outline the leased equipment, your policy number, limitations on coverage, expiration date, and will reflect important loss payee information.

It is important that you maintain proper insurance coverage for the entire term of your lease, even in the event that the equipment is not in use. This protects you, the lessee, from any unnecessary liability or expense in the event of theft, accident, etc.

Should you have any questions about your insurance coverage or requirements, please contact HCFC immediately at [email protected] or 705.443.8156. We would be happy to review with you.

I have had a bankruptcy. Do I still qualify for a lease?

We are willing to consider applicants that have been released from a bankruptcy. As this type of applicant is viewed as a higher risk, you should expect to pay a higher interest rate and may need to provide additional collateral security.

HarbourEdge Centre
40 Huron Street, Suite 300
Collingwood, Ontario L9Y 4R3

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