equipment leasing san diego

What rate of return can I expect?

Many different factors determine the rate at which we would like to place a transaction. We take into consideration such factors as the length of the loan, the dollar amount, the type of equipment, and the overall risk involved. The main factor we consider in pricing our transactions is the Marketplace of the Lessee. Our Leases include the following Markets:

Commercial:

The expected rate of return offered on Commercial Entities can range from 6.0% - 10.0% or higher. The types of entities in this category include: Corporations, Sole Proprietorships, Not For Profit Entities, Limited Liability Companies and Limited Partnerships.

Municipal:

Includes all government and quasi-governmental agencies that have either eminent domain, taxing authority or policing power. Rates of return range from 3.9% - 6.0%.

Federal:

All Federal Agencies such as Army, Navy, Department of Justice, FAA, and VA Medical Centers. Rates of Return fall into the same range as Commercial Entities but tend to be higher than a Commercial Transaction with the same term and dollar amount.

Indian Tribal:

Indian Tribal entities seeking to acquire equipment for both Tribal and Casino use. A waiver of sovereign immunity will be obtained for Investor's protection. An Investor's Rate of Return can range from 5.0% - 9.0%.**** Please note, the above estimated ranges of rate of return can and may vary.  

What happens if I don't receive a payment on time?

LII will continue to service all of its Leases even after the transfer of rights, title, and interest occur. If an Investor does not receive a payment on time, simply complete the Late Payment Report (included in packet) and submit to LII. We will begin researching the background of the late payment and will provide you with an update within 48 hours of receipt of the late payment report. LII will continue follow up on the payment until all is resolved. We will monitor the account until 3 consecutive payments have been made on time.
LII will also provide additional services such as filing forms with States, Government, etc. and obtaining updated financial and insurance information when needed.

Are you looking for additional income?

A specific return on your investment? Or, if you are simply looking to diversify your portfolio, LII's Investment Program can help individual Investors as well as banking institutions achieve their investment goals. LII's Investment Program allows an Investor to purchase a stream of monthly, annual, semi-annual, or quarterly payments after personally reviewing the credit information on a particular Entity. The credit information provided to the Investor in the initial Investment process can include the following:

  • Year End Financial Statements (Audited or Internal numbers)
  • Interim Statements
  • Corporate Tax Returns (In the absence of Audit)
  • Personal Tax Returns (Where Personal Guarantee required)
  • Personal Credit Reports (Where Personal Guarantee required)
  • Dun & Bradstreet Business Information Report
  • Credit References (Establishing Comparable Credit)
  • One Page Summary of the Terms of the Lease (LII refers to this as the Offering)
  • Memo’s and background on the company (Where necessary)

One of LII's unique attributes is its ability to make all of its own credit decisions by personally analyzing the provided financial/credit information on virtually every customer seeking financing. The common credit scorecards are not used in our approval process. Our tactics include speaking to the CEO, Manager, or Owner of a company seeking financing to gain a better understanding of the entity itself and its financial structure. This extensive research helps LII assess the risk involved in a particular transaction, which in turn helps determine the term, rate, and overall basic structure of the lease. Because our credit approval process is arranged in such a manner, some of the more difficult credits can be approved for financing. In order to limit the risk involved with these particular transactions and raise the recovery rate in the instance of default our research helps us structure the Lease to include a Pledge of Liquid Collateral, Cross-Corporate Guarantors, Co-Lessees, additional Personal Guarantors, etc. The ultimate goal is to structure a lease to ensure timely payments without default!

Who has funded transactions with LII in the past?

Our repertoire of Investors consists of large banks such as Regions Bank and Wells Fargo as well as smaller Community Banks spread throughout the United States. Our list of Individual Investors contains well over 50 different personal names and Trusts. References can be provided upon request.