Frequently Asked Leasing Questions

Who qualifies for commercial leasing?
Commercial lessees vary widely from small, one-person sole proprietorships to Fortune 100 corporations.

What equipment can I lease?
Just about any commercial equipment for use in business, government or non-profit institutions is eligible.

What dollar amount can I finance and for what term?
Typically our minimum lease size is $50,000. Our commercial and municipal lease programs run from $50,000 to $15 million.

Does the equipment have to be new?
No. We provide lease financing for new and/or used equipment. In fact, we can even buy back equipment recently purchased for cash and lease it back to you.

What about ‘‘software” and other “soft” costs like training and installation?
We do not lease software but we can finance soft costs, up to 10% of the asset cost.

Who is responsible for insuring the leased equipment?
This is the lessee’s (your) responsibility. You will be asked to provide proof of insurance coverage at closing and maintain coverage for the term of the lease.

What are the fees associated with a lease?
The standard fee is $250 for commercial leases and $150 for municipal leases. There may be additional fees based on the lease structure (e.g., escrow leases).

When should an escrow account be used for a lease?
An escrow will only be set up for municipal leases. Generally, an escrow account is set up when an asset is not expected to be completed longer than two weeks from the date that documents are signed.

How does an escrow account work?
The lease is fully disbursed into an Old National Bank account. Payments will be made from this account by Old National Bank until all equipment has been delivered and accepted.

What is the standard escrow period?
The escrow account may range from two weeks to 18 months.