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Equipment Financing

Discussion in 'Business Management' started by Jack Knight1979, May 3, 2011.

  1. Jack Knight1979

    Jack Knight1979 Very Active Member

    Jan 23, 2008
    So I'm looking to pull the trigger on some finishing equipment and I was directed to American Capital Group out of Irvine, CA.

    Has anyone here used them? I'm not too excited about throwing my financials all over the place.

  2. Flame

    Flame Major Contributor

    Apr 26, 2006
    No but if it helps at all I have used Susquehanna and it's really been a painless experience so far. Was easy to work out a lease program with a buyoff and interest wasn't anything that'd kill you. Might check them out.
  3. insignia

    insignia Very Active Member

    We've always used a local company called Accord Financial, they've done about 6 or 7 leases for us and they've always been highly competitive and super fast to close. PM me if you'd want their contact info, I can't recommend them enough.
  4. TheSnowman

    TheSnowman Major Contributor

    Aug 28, 2007
    I used Pro Captial, I think they were out of Arizona. No real issues to report.
  5. Bradster941

    Bradster941 Very Active Member

    Sep 5, 2005


    So far they have been great.

    I had a couple of late payment charges and called and asked to have them removed.
    No problem. Friendly as can be.

  6. bayshorecreations

    bayshorecreations Very Active Member

    Jun 15, 2007
  7. CES020

    CES020 Very Active Member

    Oct 16, 2008
    What are you guys paying on the lease? We looked into one recently and when I ran it through the calculator, it was 12.5% interest. When I confronted the guy about it, he said "It's not 12.5% interest, we don't deal in interest, there's no interest charges".

    A loan through the bank was cheaper by a long way in our case. We haven't made the move yet, but were really discouraged by the lease route. Got any contact info for those folks everyone seems so happy with? Maybe they'll be better than the moron I was talking to.
  8. smdgrfx

    smdgrfx Member

    Mar 9, 2006
    Houston, TX
    A lease company does not do financing. It is a lease with purchase at the end usually. (for $1 or whatever). It is loan sharking. They use a money factoring rate. More like a service fee - not an interest rate. I just bought some new equipment and talked with several lease companies before I finally just got a loan from the bank. And I had to do that twice. The first bank (Chase) would not give me a loan. They said the collateral (the printers and software) was not enough to cover the loan. The second bank (Wells Fargo) gave me a signature loan at 7.9%. Better than Chase was offering and half of what any lease company would give me. But, if you can make money with the lease option - then it is well worth it. In my case, the lease option would have been about $700 a month for 3 years. The loan came out to $460 a month for 4 years. For me the loan will save me about $3k.

    For example, a money factor of .00297 multiplied by 2400 = 7.13% APR

    I was offered a money factor of like .00625 - Like 15% and my credit score (FICO) is over 750....jeesh....

    The rate factor is always multiplied by 2400 to get the interest rate. You will have to ask for the factor. They usually won't tell you, but that is what determines your lease payment and that is what you can negotiate. I hope this helps someone.
  9. ProWraps

    ProWraps Very Active Member

    Sep 30, 2009
    San Francisco, CA
    keep in mind that there should be some pretty significant tax purposes for leasing that may far outweigh the interest/loan sharking fees.

    and if you negotiate the $1 buyout, you come out far ahead.

    we buy all our equipment outright, and my CPA screams at me everytime heh.
  10. James Burke

    James Burke Being a grandpa is more fun than working

    Jan 2, 2010
    Mitten State

    In the same boat...and I would much rather have that, than a creditors nipping at my back side.

  11. Williams Signs

    Williams Signs Member

    Oct 5, 2007
    With leasing you get to count off your whole monthly payment on your taxes not just the interest. You still get depreciate your equipment with both options. Say your yearly lease total comes out to 3600.00 you count that entire amount off. With traditional loan you get to count off the interest if yearly total is 3600.00 and interest was 1000.00 you count off 1000.00 on taxes. Lease helps you offset tax liability better.

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