Frequently Asked Questions

1. The reasons to do business with Jammer-Leasing?
2. What is the first step to get the lease process started?
3. After submission of the request for an equipment lease, how long will it take to be approved?
4. What kind of company can get a lease?
5. What is accounted for collateral?
6. Who is choosing the equipment and supplier?
7. Who's balance sheet will represent the equipment point?
8. Who is bearing all the risks in case of equipment's pilferage and damage/loss have been taking place while the lease project implementation?
9. What equipment can be leased? Is there any limitation on the equipment?
10. Is there a possibility to lease vehicles and auto dealers' equipment ?
11. Is it possible to lease used equipment?
12. Is it possible to extend the lease term over 36 months?
13. Is the refinancing of other lease projects possible before the first leasing agreement expired?
14. Can the Lessee anticipate the lease payment?
15. What happens if the Lessee failure to meet its obligation on making the lease payments promptly (case of late payment)?
16. What is a back-to-back lease and how does it work on practice?

1. The reasons to do business with Jammer-Leasing?

Our company is offering you the following conditions/terms of co-operation for mutual benefit, which positively differs us from others:

• Lease term: lease term range from one to three years (up to 5 years in particular cases)
• Financing amount: from 50 to 500 thousand USD
• Advance lessee payment: at least 20% of equipment's purchasing price.
• Annual financial rate: 14-18 % (USD), excluding lease fee and taxes, appeared in the process of project implementation.
• Lease payment schedule: monthly equal payments; also there is a possibility to deferrer the lease payments (grace period) - which is given for the period of equipment's deliver and assembly (up to 6 months).
• Compulsory insurance of the equipment delivered: insurer and the conditions of insurance agreement is defined by Lessor.

2. What is the first step to get the lease process started?

Complete the lease application then fax it or mail it.

3. After submission of the request for an equipment lease, how long will it take to be approved?

The pre-approval should be maid within 10 days starting from the date of application form and all the necessary documentation are submitted.

4. What kind of company can get a lease?

The Lessor while considering lease project will give the preference to the Lessee who is tend to have:

• the positive trends of company's development for the last two years;
• the strong comparative advantages within company's market segment, the range of quality products/services with high level of demand for it and the successful sales trends;
• the established production, marketing and sales infrastructure, highly skilled and experienced personnel and well known technology and production process;
• positive credit records;
• the appropriate collateral of all company's obligations fulfillment upon lease project.

5. What is accounted for collateral?

The collateral could be:

• lessee's advance payment in amount of 20-30% of the equipments' acquisition cost;
• securities of high liquidity, lessee's guaranteed promissory note, intangible assets, and other sorts of assets agreed earlier with Lessor;
• bank guarantees.

6. Who is choosing the equipment and supplier?

The lessee can choose both the equipment and the supplier, under the conditions earlier agreed with lessor. The lessor and the supplier also have to agree upon the equipment specifications.

7. Who's balance sheet will represent the equipment point?

The Lessor's balance sheet, excluding the particular cases.

8. Who is bearing all the risks in case of equipment's pilferage and damage/loss have been taking place while the lease project implementation?

This is Lessee's responsibility from the moment of equipment transferred. The Lessee is responsible for the equipment's safety and its maintenance and operation in accordance with manufacturer's requirements. The lease equipment is compulsory insured against property risk and also against financial risk. Jammer-Leasing enters into an insurance agreement with one of the leading insurance company.

9. What equipment can be leased? Is there any limitation on the equipment?

See "Terms and conditions".

10. Is there a possibility to lease vehicles and auto dealers' equipment ?

Yes. The lease term for vehicles and auto dealers' equipment could be found here.

11. Is it possible to lease used equipment?

It is necessary to get the preliminary appraisal report from qualified appraiser, who is specialized in used equipment's valuation of this kind. This report should include the approved price, technical conditions, and the useful life period left. The equipment's useful life should be at least twice as much as the lease agreement term.

12. Is it possible to extend the lease term over 36 months?

The lease term up to 36 months is optimum for the majority of Lesee (small- and medium-sized businesses). The pay-back period of Lesee's projects financed by our company is less then three years and do not need prolongation of lease term. However, our financing sources allow us to make lease term over five years. The leasing agreements under such terms could be made with Lesees, who maintain a satisfactory payment history with our company.

13. Is the refinancing of other lease projects possible before the first leasing agreement expired?

If you make lease payments promptly and Jammer-leasing has got the satisfactory payment history with your company then in this case your next lease project could be considered.

14. Can the Lessee anticipate the lease payment?

The leasing lowering monthly payments on investments projects and this becomes possible due to the client's taxation optimization and the long-term lease agreement. As a result, the Lessee could lower the monthly capital outflow and reinvest capital in business development. Therefore, it is not profitable for the Lessee to anticipate the lease payments. However, if the Lessee is able to anticipate the lease payments Jammer-Leasing could accept it and could partly reduce its' fee but only in case of the Lessee fully pays its reminder of debts at once.

15. What happens if the Lessee failure to meet its obligation on making the lease payments promptly (case of late payment)?

In this case, Leasing company has got a right to take back its equipment, which temporarily owned by the Lessee and sell it to repay the debt under the leasing agreement.

16. What is a back-to-back lease and how does it work on practice?

See "Back-to-back Lease".

Please do not hesitate to call us if you have any questions that are not listed above. Our clients' department personnel will be glad to answer them.

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