FAQs (Frequently Asked Questions)

What is a lease?
Equipment leasing allows you to possess and use equipment for a fixed monthly fee and period of time. With leasing, you're paying for the privilege of operating equipment during the best years of its lifetime. It's not like financing, where you make a commitment to pay for the entire cost of new equipment. There's no interest rate to worry about. Your monthly fee is based on equipment value and lease terms.

Why lease?
Because of the sizable cash outlay involved in equipment acquisitions, many business' lease to conserve capital. Money may be better spent on appreciating assets and investing capital in your business. Since monthly lease payments usually remain fixed for the entire term of the lease, you can accurately budget into the future and manage technology investments over time. Other benefits include:

• Improved cash flow management
• Fixed rate for the term of the lease
• Simplified capital budgeting by tailoring monthly payments to meet your needs
• Flexible payment terms so you can pay more in the months when the equipment is generating revenue
• 100% financing
• Technology upgrades
• Potential tax benefits

What are the tax benefits of leasing?
Since lease payments are usually made from pre-tax dollars, they may help a company save money and avoid the depreciation expenses associated with equipment purchases. Lease terms are usually shorter than the depreciable life of the equipment and may be treated as a deductible business expense, potentially resulting in a tax savings. Please consult your tax advisor for more information.

How do I qualify for a lease?
American Express Business Finance is available to business customers only. All you need is proof of business (Federal tax I.D. number, business checking account, etc.) If your business is less than two years old, the owner(s) will be required to personally guarantee the lease. We do not offer financing to individuals for equipment intended for personal use.

What is the minimum amount I can lease?
An organization can lease just about any amount, depending on their credit worthiness. Your initial leasing order must be at least $1,000. (A minimum of 50 percent of your leased equipment must be either Miller or Hobart brand.) Once that has been reached, you may lease as much as you like provided you stay within the limits of your leasing agreement.

What terms are available?
A lease term is simply the number of months you specify to lease your equipment. American Express offers lease terms of 24, 36, 48 and 60 months.

What will my rate be?
Your rate will be based on a number of factors, including: equipment type and cost, length of the lease, and the end-of-lease option that you select. Once your rate is determined, it will be fixed for the term of the lease. To quickly estimate your monthly payment, use the payment calculator.

How is the monthly payment calculated?
Your monthly payment is determined by a Lease Rate Factor (LRF), which is a periodic rental payment to the lessor, American Express, for use of the equipment. The LRF multiplied by the equipment cost will equal your monthly payment. To quickly estimate your monthly payment, use the payment calculator.

When do my lease payments begin?
Your distributor has filled out the paperwork, you've qualified and all of your new equipment is in your possession and ready to improve productivity. Not until then does your lease begin. You will be invoiced monthly.

Who owns the Leased equipment?
American Express owns the equipment until you choose to purchase it at the end of the lease.

Who services and maintains my equipment?
Miller Electric True Blue® Warranty covers equipment repairs under the terms of the warranty for three years. Beyond the warranty period, the lessee (customer) is responsible for equipment repairs. The lessee is obligated to properly maintain equipment during the lease period. Equipment is inspected upon its return and the lessee is charged for any necessary repairs.