You own your equipment. You pick your due
date. You pick
your term.
EASY
There are no detailed financial papers needed
and within just a
few hours, your line of credit will be available for you.
PROTECTS YOUR LINE OF CREDIT
No interference with your key borrowing lines
of credit.
PERSONAL CREDIT PROTECTION
No reporting to the personal credit agencies.
Your account is
recorded as a business expense, not a personal debt.
NO ADDED COLLATERAL NEEDED
No blanket liens filed, no compensating bank
balances required.
AVOID EQUITY POSITIONS
Installation, training, delivery etc . are all
inclusive.
GENERATE REVENUE
Allows equipment to pay for itself with usage.
PROTECTION AGAINST RISING COSTS
Put equipment in use today, using
today’s pricing.
OFF BALANCE SHEET ACCOUNTING
Encourages a dollar-for-dollar expense for
usage without
reporting the asset on your books.
Cash Flow
Cash
flow can be achieved in different ways. There’s credit cards, and there’s third
party financing such as bank lending or lease funding. If your objective
is cash flow there is no real difference. But if your objective is to look
at a much broader picture, then the method you choose to finance can make a huge
impact on your business bottom line.
Cash out of pocket
When you pay out of
pocket for equipment there is no real cash flow solution. You’ve taken cash
from your business. You’ll rely on depreciation schedules to try and recoup
your investment dollars.
What’s the difference if I choose to not pay cash?
The two most common forms of equipment financing come from
bank funding or from lease funding. Both provide exceptional cash flow, but
there are very distinct differences in these two forms of funding, including
tax treatment, and how the asset is recorded on your books.
Let’s explore these
two options
Paperwork
Bank Loan:
Typically a financial package will be required which may consist of tax
returns, business plans, usage of asset , ROI projections, proof of debt to
income ratios.
Leasing:
A one
page application can enable an established business to get up to $200,000.
Timing
Bank Loan:
It is
not uncommon to have decisions take 2 or 3 business days or more, depending
on the loan type requested
Leasing:
Decisions are usually given within 3 or 4 business hours, or even less in
some cases.
Credit Ratings
Bank Loan
: Most bank
loans may report the note against you personally, even if a business note,
so this can potentially have an adverse effect on your debt to income
ratios. Many times blanket lien positions are required, tying up other more
valuable assets.
Leasing:
Is “off
the books” financing… no reporting to the personal credit agencies… no
blanket lien positions needed, offering added protection.
Equity Positions
Bank Loan:
Be
prepared to show loan to value ratios. Compensating balances may be
required. Down payments are quite common.
Leasing:
None of
these are applicable. It’s truly 100% financing. There is no equity
position needed.
Dollar Differences
Bank Loan:
Bank
rates will be lower, saving you money over the term of the note. But, the
difference is usually minor if you factor in all that is needed to secure
this savings.
Leasing:
Your
cost of funds will be a few dollars higher, but the difference will probably
be recouped in the way you record the asset in your books.
Note: Consult your tax advisor when entering into any financing
commitment. Every bank policy is different.
The Process is Easy
Step 1: APPLYING MADE CONVENIENT
Applications can be accepted via phone, fax, email, text or on the web.
Step 2:
QUICK TURN-A-ROUND
In about three hours or less, we will
have a decision in place and issued.
Step 3:
APPROVAL AND TERMS OUTLINED
You’ll receive an email and/or a
call confirming the approval details.
Step 4:
VERIFY EQUIPMENT DETAIL
We’ll simply make sure that the
equipment details are confirmed, including final pricing.
Step 5:
VERIFY TERM AND CREATE DOCS
Then we verify the term desired
and create a lease pack and email it to you.
Step 6:
RECEIVE SIGNED DOCS AND BEGIN
Once we receive the signed
docs via email or fax, we begin the production process.
FOR ORDERING OR ASSISTANCE CALL:
