FREQUENTLY ASKED QUESTIONS


What types of equipment does Beacon Funding lease?

What vendors can I order from?

Can non-equipment items such as software and maintenance be included?

How long does it take to be approved?

Are there any application fees?

What are your approval requirements?

Why did you request my personal guarantee?

What happens after I am approved?

How long can I lease?

How much equipment can I lease?

How are payments made?

What end of lease purchase options are available?

Do equipment leases have interest rates?

Who is responsible for taxes?

Who insures the equipment?

Who provides warranty coverage on the equipment?

Can the lease be cancelled or paid off early?

What if my equipment becomes obsolescent?



What types of equipment does Beacon Funding lease?
Beacon Funding specializes in financing equipment for tow truck, trailer, boom truck, embroidery, screen printing, and sign businesses, but we finance many other types of business and professional equipment, including computers, office, and warehouse equipment.


What vendors can I order from?
A benefit of leasing with Beacon Funding is that you can purchase equipment from any reputable vendor of your choice. Select your equipment and options, negotiate your best price, and let us do the rest! 


Can non-equipment items such as software and maintenance be included?
Yes. One of the many benefits of leasing includes the ability to "bundle" a number of equipment items into a lease including software, service, and installation costs. This way, you can make one simple monthly payment for an entire system or equipment line. 


How long does it take to be approved?
Your simple business credit application will usually be approved within 24-48 hours! Applications can be made via phone, fax, or online over our secure server. 


Are there any application fees?
No, unlike many lending institutions, Beacon Funding does not charge any application fees. 


What are your approval requirements?
During the approval process, we evaluate your business credit history (including bank and trade references), personal credit history of the owner(s), and collateral value of the equipment. If your credit history has some negative items, we can often approve a lease with a shorter term and/or a down payment. 


Why did you request my personal guarantee?
An important part of our credit decision is based upon the personal credit bureau report of the owner(s). These reports are typically very accurate and reliable, and allow us to provide you with a quick credit decision. Historically, we have found that the payment patterns of privately-held businesses mirror that of the owner(s). 


What happens after I am approved?
Once you are approved, we prepare the proper documents and overnight them to you, or send them via DocuSign. After you sign and return your lease documents, Beacon Funding issues a purchase order for the exact equipment that you have selected. Upon your verification of delivery and acceptance of your equipment, we pay the vendor and your lease begins. Your first payment is due about 30 days later. 


How long can I lease?
Most leases are written for 24, 36, 48, or 60 months, depending upon the type of equipment. Leases for items that depreciate rapidly (such as computers) are usually shorter terms. Expensive, durable machinery can be leased with terms up to 84 months. 


How much equipment can I lease?
Beacon's typical lease amounts range from $7,500 to $500,000. For equipment costing under $5,000, many of our clients find it non-beneficial and cost effective to finance via alternative measures (i.e., cash flow, credit cards, etc.). 


How are payments made?
Payments can be structured to meet your needs. Our typical payment schedule includes the first and last payments made at the time you sign your lease documents, with your next monthly payment due about 30 days after your acceptance of the equipment. Payment can be received via ACH, credit card, or business check. Arrangements can be made based off what works best for you. 


What end of lease purchase options are available?
We offer purchase options to meet your needs: $1.00 purchase option (which is treated as a purchase), fixed percentage option (our most popular is 10%), or fair market value option (often treated as deductible expense payments). The best option for you can be determined after a brief conversation. We encourage you or your accountant to call us. 


Do equipment leases have interest rates?
No, having an equipment lease does not include a compound interest rate that is normally associated with bank loans. Once you activate your lease, you have a fixed monthly payment (based on lease terms, corporate pay history, personal and business credit, time in business, etc.) and will not change during your lease term. For your estimated monthly payment, try our Lease Calculator


Who is responsible for taxes?
Because we offer a "net" lease, the end user/lessee is responsible for all taxes. Beacon Funding is required by law to collect all applicable sales, use, and property taxes and remit them to each jurisdiction. Tax types and rates vary by state and locality.


Who insures the equipment?
The customer is responsible for insuring the equipment against risk of loss including property and casualty coverage, and liability. Customers typically just add the equipment to their existing policy. We do offer insurance for non-title equipment.


Who provides warranty coverage on the equipment?
Beacon Funding passes through all manufacturer warranty coverage to the customer. Warranty claims are processed in the same way they would be if the customer was the owner of the equipment. 


Can the lease be cancelled or paid off early?
No, the lease is a non-cancelable agreement for a specified term that you select at the beginning of the lease. However, we do provide you the opportunity to upgrade, trade-in, or "buyout" your lease before the end of the term. 


What if my equipment becomes obsolescent?
In the unlikely event that you need to upgrade your equipment during the lease term, we will work with you to meet your goal. We can amend your original lease, assist you with a trade-in of your original equipment, or a new lease can be structured.
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Beacon Funding location

3400 Dundee Rd, Suite 180

Northbrook, IL 60062

Beacon Funding Phone

800.866.6396

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Why Beacon Funding?


Founded in 1990, Beacon Funding is a leading financing company providing small-ticket equipment financing services to US businesses. Over the years, we've become a premier resource for financing business equipment with flexible payment programs.

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