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Lease Benefits
Compared To A Bank Loan
Fewer Approvals By Banks:
Banks don’t do start
up businesses (unless heavily collateralized)
Banks typically want
collateral or 20% cash down on every transaction
Banks approve smaller
amounts - then cut you off (unless you have full financial statements)
Banks don’t like equipment
they don't understand - LFCI
specializes in A/V and high tech lending - for over 15 years!
Approval Ratios:
Banks typically turn
down 80% of equipment applications OR they shorten the terms and ask for
additional cash down
LFCI turn down rate
is about 30%
Qualifications:
Banks typically want
two years tax returns and a personal financial statement for all loans
LFCI can get a
business up to $150,000 WITHOUT tax returns or personal financial statements
Rates For Leases:
Are contingent upon perceived
risk
Banks are heavily
into collateral and don’t adjust rate to fit the risk - results in fewer
approvals
LFCI rates are
similar to bank rates AND no collateral is required
LFCI can approve MORE
applications because we are risk based lenders
It doesn’t matter if rates are 0% if you can’t get approved!
Personal Loans:
Are typically more expensive than leases! Rates are typically credit card
percentage rates or higher
Personal Credit Report:
Bank loans (business
& personal) show up on your personal credit report and may keep you from getting further credit or being unable to buy a car or house - or obtain a lease!
Leases do NOT show up
on your credit report - unless you don’t make your payments
Tax Write Off:
Lease is 100% tax write off - in real time up to $100,000 per year!
(check your tax pro for detail)
Accelerated tax write
off - Should lower total cost of the lease to a bank loan rate
Personal loan - you
do not have the tax advantages of a commercial lease
Business Credit History:
Personal bank loan -
does NOT develop a pay history in the business name
Receive up to a
$150,000 lease line of credit with on-time payments - without tax
returns!
Don’t Use Up Your Credit Line For Equipment Purchases:
Keep your cash for
short term expenses, cash flow, or purchases you plan to pay off in 1 year
LFCI approves app
only to $150,000 AND gives you additional lease lines of credit without tax returns
Collateral:
Do you really want to put your home up as collateral to purchase equipment -
when you don’t have to?
LFCI offers the ability to trade-in or upgrade your equipment
without a new loan application!
Call the Creative Lending Specialists At LFCI For A Free
Consultation
(800) 626-LFCI
(843) 363-5990
(843) 363-5991 Fax
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