Question frequently asked by Lessees:

Q. Who can lease?
A. Any business, organization, association, or government entity meeting our credit worthiness standards may lease equipment. Ervin Leasing does not lease to individuals for personal use.

Q. What criteria are used to determine credit worthiness?

• Length of time in business
• Financial condition
• Dun & Bradstreet reports or other credit rating services
• Bank and/or trade references
• Personal credit payment history of business owner(s)

Q. How is the monthly lease payment calculated?
A. The monthly lease payment is based on the risk factors associated with time in business, industry, equipment cost, equipment type, lease term, and lease purchase option.

Q. How much money do I have to pay up front?
A. Leases can be structured with no initial payment, however the normal requirement is two advance payments (first and last payment) or a security deposit equal to two payments. The security deposit can be applied toward the purchase of the equipment at lease end or returned to you when you return the equipment to Ervin Leasing.

Q. Does the lease document provide information about my purchase option?
A. Yes, the purchase option is prominently displayed on the front of the lease agreement with details on how to exercise the option in the body of the agreement.

Q. When does my lease begin?
A. Your lease will start after all of the following have taken place:

• Equipment has been delivered and/or installed.
• Ervin Leasing is in receipt of the properly executed lease documents and, if required, initial check.
• Ervin Leasing is in receipt of the proper vendor/supplier invoice for the equipment.
• Ervin Leasing has contacted you and received your verbal confirmation of the lease.

Q. How will I be billed?
A. During the telephone lease confirmation you select one of the following billing options:

• Sign up to have monthly payments automatically deducted from your checking or savings account via Authorization for Preauthorized Withdrawals (ACH Debits).
• Monthly invoices mailed to you approximately 20 days prior to your due date.
• E-mailed invoice 20 days prior to your due date.
• Recurring Credit Card payments (fees may apply for this service)
• We will mail you a coupon book at the start of the lease.

Q. When are monthly payments due?
A. During the telephone lease confirmation you will choose one of three different due dates (the 10th, 20th or 30th of each month). We can also accomodate quarterly, semi-annual and annual payments.

Q. Will I get a copy of my lease?
A. Yes, we mail you an executed copy of the lease along with a cover letter that summarizes the lease structure and your insurance obligation.

Q. Will I be charged a late fee?
A. If a payment is received after a five day grace period a late fee will be assessed according to the terms of the lease contract.

Q. Will I have to pay property taxes?
A. In accordance with the regulations of the taxing authority where the equipment is located, Ervin Leasing, as owner of the equipment, is required to report this equipment for personal property tax assessment. Ervin Leasing will invoice you for property taxes as stipulated in your lease contract.

Q. Does Ervin Leasing charge for insurance?
A. As stipulated in the lease contract, you are required to maintain insurance against loss, theft, damage, or destruction of the equipment. Ervin Leasing requires a copy of the certificate of insurance for this equipment listing Ervin Leasing as "loss payee" and "additional insured." Otherwise an insurance policy will be purchased for you covering this equipment and you will be billed monthly for this policy.

Q. Can the equipment be purchased before the end of the lease term?
A. Yes, just request a buyout quote from the Asset Management Dept. at (800)748-0015.

Q. Is it possible to upgrade or add-on to my original lease?
A. Yes, with an acceptable payment history, Ervin Leasing provides cost effective upgrade and add-on alternatives.

Q. Can this lease be canceled?
A. No, but you may trade-up this equipment and lease new equipment prior to the end of the lease or you may payoff the lease early with no penalty.

Q. How do I obtain a lease payoff quote?
A. Due to the volume of payoff requests, we ask that you leave your information on our voice mail buyout line at (800)748-0015. You will receive a faxed buyout quote within 24 hours. You may also fax your request to the Asset Management Department at (800)748-0015, or send an e-mail to: buyouts@ervinleasing.com. We ask that you provide your complete name, phone/fax numbers, lease contract number, and business name.