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Equipment Financing

J

Jack Knight1979

New Member
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.

Thanks!
 
Flame

Flame

New Member
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.
 
Letterbox Mike

Letterbox Mike

New 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.
 
Bradster941

Bradster941

New Member
Flame said:
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.
Click to expand...


+1

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.

.
 
CES020

CES020

New Member
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.
 
smdgrfx

smdgrfx

New Member
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.
 
ProWraps

ProWraps

New Member
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.
 
W

Williams Signs

New Member
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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