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Equipment leasing rate questions

Old 01-20-2015, 02:33 PM
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Default Equipment leasing rate questions

This question is to any leasing agents that can share some info.

I am in the process of leasing new equipment for my sign business. (printer, plotter, software, etc) I am using the manufacturers' leasing company and from what I can gather from the payments, I am paying somewhere around 9%!

I can get a loan through my credit union for 6.5% but they will only finance 80% of the purchase price and I would have to pay the sales tax upfront.

The amount financed is $23,000 for 60 months, first and last upfront. I have an 840 score.

What is a competitive equip. lease rate for this type of financing?

Thanks in advance!

P.S. I spent 15 years in the Finance Dept in the auto biz so I am aware of the profit center that the financing provides, just want to know what the going rate is for a deal such as this.

Last edited by signmansez; 01-20-2015 at 03:16 PM.
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Old 01-20-2015, 04:01 PM
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I just leased two large pieces of equipment through my bank for 3.8% for 7 years. Closed last week.
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Old 01-20-2015, 04:54 PM
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Can you buy it cheaper and finance it using a HELOC?
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Old 01-20-2015, 06:48 PM
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Originally Posted by Sprockets View Post
Can you buy it cheaper and finance it using a HELOC?
The price will be the same just didn't want to tie my business to my house. Been mortgage free on this one for a few years now!
May have to go that route if the numbers for the lease don't work.



Salty did they lease 100%? What bank?
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Old 01-20-2015, 07:56 PM
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Some leasing companies do not use simple intrest, just make sure you look at the whole picture and total up the payments. If it is truely 9% I would think that is fair seeing that it is basically a unsecured loan for equipment that once you use will have little value.
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Old 01-20-2015, 10:00 PM
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wow. i feel lucky my equipment credit lease program through BofA is under 5% right now. (believe 4.75-5%)

Do you have a private client manager where you bank? That was the best choice we ever made - getting a great relationship with our bank. we needed to double our credit line from 500k to 1M to finance a very large short term project and we had the approval in 24 hrs with a few simple reports....

but what they want to see is liquidity and cash flow. we use the lease for tax purposes not because we can't afford to buy the stuff without it.
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Old 01-21-2015, 06:50 AM
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Originally Posted by pfifla1 View Post
wow. i feel lucky my equipment credit lease program through BofA is under 5% right now. (believe 4.75-5%)

Do you have a private client manager where you bank? That was the best choice we ever made - getting a great relationship with our bank. we needed to double our credit line from 500k to 1M to finance a very large short term project and we had the approval in 24 hrs with a few simple reports....

but what they want to see is liquidity and cash flow. we use the lease for tax purposes not because we can't afford to buy the stuff without it.
I voiced my disapproval yesterday afternoon to the leasing agent and he said he would get back to me today with a revised contract.

The difference in 3 points is about $1800 over the term of the contract so it's not peanuts. I understand everyone's gotta eat but it's not like I'm a bottom of the barrel credit risk.

I'll update today when I see the new figures.
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Old 01-21-2015, 09:25 AM
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Originally Posted by signmansez View Post
The price will be the same just didn't want to tie my business to my house. Been mortgage free on this one for a few years now!
May have to go that route if the numbers for the lease don't work.



Salty did they lease 100%? What bank?
yes 100% financing, First Citizens Bank
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Old 01-21-2015, 09:35 AM
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Have you talked to your bank about an unsecured line of credit?
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Old 01-24-2015, 02:07 AM
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Originally Posted by BIGnUGLY View Post
Have you talked to your bank about an unsecured line of credit?
Or even secured with assets from the business? That is how ours is - not personally but from inventory we already own...
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Old 01-25-2015, 08:59 AM
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Got it handled, secured an asset loan through the credit union and got a 4% rate. New equipment is ordered and can't wait to get it up and running!
Thanks for the replies
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Old 01-25-2015, 12:07 PM
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I recently picked up new equipment (130k) and received just under 5%, 5 year -- I was very happy
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Old 01-25-2015, 05:15 PM
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9% is insane. Find a different bank... and forget "leasing"... it's often a scam.
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