I can say this, here's what you can expect when planning to finance or lease your equipment:
1. The minimum amount a bank will finance
(generally) is no less than $2,000.00.
2. With a FICO score of 650, or higher, you can estimate your monthly payment at about $37 per $1,000 financed.
(+/- $3)3. Multiply this payment by the number of months in your terms, then add $1
(see #4) to get the full amount paid for your equipment.
4. At the end of your terms, you purchase the equipment from the bank/lender for $1. This qualifies the entire deal as a lease and allows you to write off the depreciation of the equipment, as well as the interest.
(talk to your accountant about this first)5. Most banks/lenders will allow you to pay off the loan completely with
NO PREPAYMENT PENALTY after the first year.
(This will allow time for the equipment to pay for itself and let you avoid a good chunk of interest.)6. If you've been in business for
less than (2) two years, expect to have a higher interest rate.
7. If your FICO score is
less than 650, expect to have a higher interest rate.
8. If you are affected by
either #6 or #7, expect to fork up some cash for a down payment.
9. The bank
WILL come out and repo your infrared camera, blower door, etc. if you don't make your payments.
(We see them do it just about everyday.)I hope this information helps those who are thinking about financing/leasing their equipment. It really can help those starting up.
Leasing the equipment and saving your capitol for things like advertising is a great idea. When your 13th payment comes due and your equipment has payed for itself
(because you've marketed properly), call the bank and pay it off. Voila! Now you can move on to adding a crew and another system.
To speak with a leasing agent call Steve Carnes at (866) 484-5575.
