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Glossary of Terms

  • $1 Buyout

    A $1 buyout lease finances the entire cost of the equipment with only a $1 residual value. When your lease payments are completed, you can purchase the equipment at $1. Then Peac Solutions registers the equipment and pays property taxes which are billed to you.

  • Administration Fee

    This fee covers Peac Solutions’ cost of filing property tax renditions, corresponding with the taxing authorities and processing the property tax payments. The fee is assessed on leases that incur a property tax liability and is disclosed in the lease documentation.

  • Advanced Rental Fee

    Depending on credit and other factors, some customers are required to pay an upfront advanced rental fee in order to finance their purchase through Peac Solutions. The advanced rental fee is applied to your account at the very beginning of your contract and will ultimately become your first and/or last months’ payments. So even though […]

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  • Contract Payment

    This is the regular monthly/quarterly/annual payment amount, according to your contract.

  • Delivery and Acceptance

    Some vendors require partial or full payment prior to the delivery of the equipment, which PEAC Solutions may accommodate at PEAC Solutions’ discretion. If the vendor is approved for pre-delivery funding, after a customer is approved for financing with PEAC Solutions, we will release the funds as soon as possible to the equipment vendor. The […]

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  • Equipment Finance Agreement

    An equipment finance agreement is a loan for the full invoice amount. You own the equipment and you grant Peac Solutions a security interest in the equipment to secure the payment and performance of your obligations under the agreement. You are responsible for registration and property taxes. If sales tax was not included in the […]

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  • Equipment Lease

    An equipment lease is an agreement in which PEAC Solutions purchases the equipment and the customer retains and uses the equipment in exchange for monthly lease payments. At the end of the lease, you do not own the equipment; however, you may exercise the purchase option per the terms of your lease agreement.

  • Fair Market Value Lease

    A Fair Market Value Lease is an equipment lease that offers the option to purchase the equipment end-of-term, at its then-determined fair market value.

  • Insurance Fee

    Your lease contract may require you to have insurance that protects the equipment against all risks of loss. There are two options available to you: Either you can cover the equipment under an existing commercial policy and provide us with proof of that coverage, or We will secure coverage for Peac Solutions’s interest in the equipment* and […]

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  • Interim Rent

    Interim rent is a partial payment that covers the time period between the day we verify you’ve received your equipment and the first payment due date. It’s noted in the first paragraph of your agreement, which reads “We may charge you a partial payment to cover the time period between delivery and the first payment […]

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  • Installment Payment Agreement

    An installment payment agreement is a loan for the full invoice amount, used for the finance of software. The vendor or developer of the software will hold title to the software, and the customer will acquire a license to use the software. Per the terms of the agreement, the customer will grant PEAC Solutions a […]

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  • Late Charge

    If we receive your payment after the due date on the invoice, you may be assessed a late charge. The amount is calculated as a percentage of the invoice amount past due, less taxes, or may be a flat charge, depending on the terms of the contract you signed. You will receive a one-time waiver […]

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  • One-time Documentation Fee

    PEAC Solutions does not charge an application fee. We may charge a fee to compensate us for processing the documents and reimburse us for the fees incurred with filing UCC-1 financing statements. When applicable by law, taxes may be applied to this fee.

  • Origination Fee

    PEAC Solutions does not charge an application fee. We may charge a fee to compensate us for processing the documents and reimburse us for the fees incurred with filing UCC-1 financing statements. When applicable by law, taxes may be applied to this fee.

  • Personal Guarantee

    If your business does not have sufficient commercial credit, you can provide us with a personal guarantee. This means that you and/or other individuals agree to be personally responsible for fulfilling the terms of your agreement and making payments.

  • Power of Attorney

    When purchasing a vehicle through us, there is a point in the process where you’ll have to assign power of attorney to our title company so that they can register and secure the certificate of title, and sign any necessary documentation on your behalf. We’ll provide the form, which you would have to have notarized […]

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  • Property Tax

    Many local jurisdictions assess an annual tax on tangible personal property. The lessor, as owner of the equipment, pays this tax to the appropriate taxing authority. (Our lease rate does not include this tax.) We pass this tax on to you on an annual basis. Again, these taxes change periodically and are not included in […]

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  • Returned Check Fee / NSF Charge

    If your payment is returned from your bank for any reason, we may charge you a fee.

  • Sales/Use Tax

    In most states and some local jurisdictions, we are required to collect sales/use tax on each monthly lease payment. Since the lease payment was calculated in advance and tax rates can change periodically, this amount is billed separately. In certain states, the full amount of tax is due at the inception of the lease. In […]

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  • Security Deposit

    Required for some contracts, a security deposit is paid upfront at the beginning and set aside to use in case the equipment becomes damaged. Any unused portion of the security deposit will be returned to you at the end of your contract, upon your request, after all your obligations under your agreement have been met. […]

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  • Spousal Consent

    Depending on the state where you do business, we can’t accept your personal guarantee without your spouse’s signature.

  • Stipulation

    A stipulation is a credit requirement that must be fulfilled before a deal can be funded. Our credit team has a list of conditions that each application must meet prior to the application being booked. Depending on the stipulation, certain proof, information or documentation must be supplied by the customer and approved by the appropriate […]

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  • Tax Exemption

    About Sales Tax Exemption For Loans If your organization is tax exempt, and you are making your equipment purchase with an EFA or IPA, please inform your dealer’s sales representative and provide your tax documentation at point of sale. They will work with us directly to make sure your tax-exempt status is reflected in your […]

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  • Title

    In the United States, the certificate of title or simply title for a vehicle is the legal form establishing an individual or a business as the vehicle’s legal owner. As the lienholder for vehicle you are financing, PEAC Solutions retains the title until your finance agreement is paid in full.

  • TRACLease

    In a TRACLease — similar to a fair market value lease, but specifically used for titled vehicles financed through our Commercial Vehicle Group — both PEAC Solutions and the customer agree on a terminal value. At the end of the lease, the customer must pay this terminal value or return equipment to PEAC Solutions for […]

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  • Upfront Tax

    In certain states, the sales/use tax on leases is required upfront. Check with your sales or customer service representative to determine the requirements in the state where you operate your business.

  • UCC-1 Financing Statement

    A Uniform Commercial Code-1 (UCC-1) financing statement is a legal form that a creditor files to give notice that it has or may have an interest in the personal property of a debtor. (A “debtor” is a person who owes a debt to the creditor as typically specified in the agreement creating the debt.)

  • Verbal Verification

    A verification call is when a member of our documentation team calls an approved applicant to verify that you actually applied for a loan or received the equipment you purchased. As you might be aware, there is always the possibility of an unauthorized individual trying to wrongfully access personal information, or take advantage of our […]

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  • Working Capital Loan

    With shorter terms and lower dollar amounts, a working capital loan is typically used to cover daily expenditures and costs such as payroll or rent. Working capital loans are not meant for not large purchases or investments.

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