Who is Wagon Leasing?
Wagon Leasing is an independent leasing company with affiliations with both Sunbelt Finance and Century Finance. As with Sunbelt and Century, we specialize in the transportation industry meeting the needs of owner-operators, small, and medium size trucking companies.
Both Sunbelt and Century are independent factoring companies serving the transportation industry.
What kind of equipment can I lease?
At the present time, Wagon Leasing is concentrating solely on trailers. We will consider any type of non-specialty trailer. The most common trailers leased are dry vans, reefers, flatbeds, step-decks, and tankers. This is only a general idea of the type trailers leased. Other types will be considered. Limitations may apply based on the use of the equipment.
Do I have personally guarantee the lease?
Guarantees are typically required for younger, less established businesses and businesses that may not be as financially strong. Each request is unique and decisions are made on a case-by-case basis.
What if I have bad credit or have gone through a bankruptcy?
At Wagon Leasing, we understand the risks of running a company and the perils of life. Many lenders view these as extraordinarily high risks factors. Granted, we cannot change the past but at Wagon Leasing we are more focused on the fact that you have overcome these hurdles. The affiliations with the factoring companies (Sunbelt and Century) help us get past many of these hurdles.
Is factoring a requirement for obtaining a lease?
No, you are not required to factor your receivables. However, we do have more options available to offer if the receivables are factored through one of our affiliate companies.
If I factor my receivables, am I guaranteed a lease for equipment?
No, we cannot guarantee that you will be approved for a lease simply because you a client of either Sunbelt or Century.
Why is there no interest rate on my lease documents?
A lease is a contract not a promissory note. There is no principal balance or interest rate.
What is the difference between a lease and a loan?
There are major differences between a lease and a loan.
Again, a lease is a contract not a promissory note. On a promissory note, you have a principal balance and an interest rate. You own the equipment subject to the amount owed on the loan. Once you make all your payments, the loan is paid and the equipment belongs to you free and clear. Typically, you may pay off the note at any time without penalty.
A leases contract has no principal balance and no interest rate. A lease contract specifies a certain number of payments to be made at a certain amount. You do not own the equipment at any time during the lease. Depending on the type of lease (see section on lease terminology), you do not automatically own the equipment once all the payments have been made. You may have the option to purchase but, you must exercise that option. Also, a lease is a non-cancelable contract. All payments must be made prior to termination. At Wagon Leasing, we will consider an early termination (buy-out/payoff) of the lease upon request. Such requests are granted on a case-by-case basis.
I purchased my equipment with cash. Now I have a cash flow problem. What can I do?
Let Wagon Leasing help. This is not a problem. We can do a “sale-leaseback” of your equipment. Basically, you sell your equipment to us at market value (subject to appraisal) and we structure a lease for you. You get your money to cover cash flow needs.