EFA, $1, $101, 10% PUT or FMV: Why the Financing Structure Matters
Two financing proposals for the same piece of equipment can carry very different economics, and the equipment is not the variable. The financing structure is. An EFA, a $1 or $101 purchase-option structure, a 10% PUT and an FMV lease each handle the equipment's...
Your Business Is Financially Sound. Why Did the Bank Still Say No?
When a business owner says, “My business is financially sound. Why did the bank still say no?” that sentence usually reflects the owner’s perspective after a financing decline. It is not a certification that the business meets every lender’s definition of financial...
Equipment Financing Doesn't Have to Mean a Mountain of Paperwork
When a business owner identifies a piece of equipment the company needs, the next concern is often not the equipment itself. It is the financing process. Many owners assume they will need to prepare a large underwriting package, collect years of financial records,...
The Lowest Equipment Payment Isn't Always the Best Financing Decision
When a business is evaluating equipment, the lowest scheduled payment can be appealing. Lower payments may help preserve cash, support seasonal operations or create more room for payroll, inventory and other commitments. But payment size is only one part of the...
Thinking About Equipment Before Year-End? October Is the Time to Start Planning.
October is a practical time to evaluate an equipment acquisition that your business already expects to make. That does not mean buying equipment simply to obtain a tax deduction. The equipment should make operational and financial sense on its own. It should address a...