FAQ's with a Finance Manager
Updated: Feb 17, 2020
Being a business financing company, it can be quite confusing to people who don’t know what we do. We asked Finance Manager, Brett Horton, (who has cold called roughly 11,000 people and counting) to let us know what questions came up most in the initial first conversation. Here are his responses to frequently asked questions that come up on a daily basis:
Q: What do I need to apply?
A: A completed application via our website alongside your last 3 months business bank statements and an invoice or price quote/link to the equipment looking to be purchased.
Q: What is an acceptable credit score range?
A: While we prefer 650+ credit, we can work with relatively challenged credit if time in business and current business revenues are strong. Remember it’s not about the credit score but the tradelines that are present on a credit report. Having a mortgage on your credit report will give you the best chance for approvals.
Q: What’s the rate?
A: Rate is dependent on credit, time in business, and the condition of the equipment being purchased however rates start around 6% on pre-owned equipment and around 10% for true startups with zero time in business. The best available rate will always be attained for your current credit situation on every file.
Q: How old will you go on pre-owned equipment?
A: This depends on what type of equipment we are looking at. We obviously prefer no older than 10 years on titled equipment however sometimes we can make exceptions depending on credit and current mileage. Yellow iron is normally a 15 year cutoff however like I already mentioned, credit and current hours can allows for exceptions. Best thing to do is submit the equipment to a finance manager ahead of time and they will let you know if it’s approvable or if it’s too old!
Q: How much down will you require?
A: Down payments are also determined by current credit situation, overall condition of the equipment, and the amount being financed. Sometimes it’s first and last payment upfront, a percentage of the total equipment cost, or even 0 down. Your credit will determine what is required for a down payment. We do offer a wide range of principal payoffs, buyout options, and various down payments to cater to every cash flow situation.
Q: Do you offer leasing as well as financing?
A: We sure do in which case payments can still be written off which you can learn more about at: https://www.section179.org. Leasing options normally have a buyout at the end of the term in which you can decide if you’d like to own the equipment outright or return the piece based on your current workload.
We hope we've answered any questions you had when considering financing for your business. Remember we provide both working capital and equipment financing. Still have questions? Don't hesitate to reach out! We want you to be educated and positive you're making the right decision before moving forward.