Questions & Answers About Financing

What Types of Entities May Finance?

Any business entity may finance its energy-efficient retrofit project, including entities such as corporations, proprietorships, partnerships, self-employed individuals and professional corporations (i.e., doctors, lawyers, etc.). Municipalities, the Federal Government and non-profit organizations may also finance equipment.

How Long Can an Entity Finance the Equipment?

Lease terms may vary from 2 to 10 years, with 5 years being the general maximum for financial packages under $100,000.

Who is the Lessee?

The borrower is the lessee.

Who is the Lessor?

The funding source is the lessor.

Does the Customer Own the Equipment at the End of the Financing Term?

YES, every type of financing package which MTI Lighting Specialists offers has the option at termination to purchase the equipment. The purchase price varies with each type of financing package. The customer can choose a Fair Market Value option or a pre-agreed purchase price, such as 10% or $1.00.

Do Monthly Payments Change During the Financing Period?

In the majority of financing options offered through MTI, the monthly payment does not change unless the customer has pre-arranged a special payment structure. 

When Does the Customer Begin to Make Monthly Payments?

After any applicable advance payments (if required) or security deposits (if required), the customer's first payment is due approximately 30 days after delivery and installation of the equipment and after the customer has approved the project as satisfactory. 

May the Customer Pay the Financing Package Off Early?

In all financing packages, the customer has the option of early termination. Although the cost for termination varies, most often, the customer may be released of any further obligation under the lease by paying the balance of the unpaid principal and any additional fees or penalties.

Does the Customer Pay Taxes?

Sales tax for the customer's area will be computed and billed monthly on the payment. In some states, the customer is required to pay the tax up front.

How Long Does it Take to Approve the Customer's Application?

Once the application and necessary information is received from the customer, all trade and bank references are reviewed. Depending on how soon the references respond to the request, the customer can be approved between 1 to 5 business days.

When Does the Customer Sign the Financing Documents?

Once credit is approved, the financing documents are prepared and sent via overnight delivery to the customer. Once the executed documentation is returned by the customer, a purchase order is issued to the vendor.

Other Questions?

If you have any other questions, please contact MTI Energy Management / Lighting Specialists at (248) 446-9502 or use our contact form here.