05-20-2005, 01:48 PM | #1 (permalink) |
Join Date: May 18 2005
Posts: 55
Rep Power: 0 | Im sure this topic has been covered once or twice (or 100 times) before but I couldnt find it. We have many different option of aquiring equipment but what is the price difference going to be between leasing and financing on a monthly basis? I dont know of specific units but give me an example of a lease vs finance price of particular equipment with full retail price. Thanks |
05-20-2005, 09:32 PM | #3 (permalink) |
Join Date: May 18 2005
Posts: 55
Rep Power: 0 | Ahh, yes, I agree that it would take consideration of each circumstance but Im asking a slightly different question. I know how to figure out what financing a 10,000 dollar bed over 3 years for 5% would be but what I dont know is what kind of terms the companies are offering for tanning beds (based on great credit). How low of an interest rate are they offering? How long of a term are they offering? What are the limitations of financing tanning equipment? As for leasing, I dont know how to calculate what the monthly payments would be so Im hoping someone can offer some examples of what they are paying on their equipment. For example, what unit are you leasing? What is the retial price? What is your monthly payment and for what term? What is your buy-out for the end of the lease term? Thanks for any information you can provide. Thanks!! |
05-20-2005, 09:42 PM | #4 (permalink) |
Waiting Confirmation Join Date: Apr 22 2004
Posts: 3,646
Rep Power: 0 | Interest rates are as low as 6.5%-30% depending on credit, networth, time in business and plan. We always secure a $1.00 buyout and no prepay(you get the dep.) and 5 year term. I have utilized traditional lenders and leasing companies...Highline Capital Terry Fransen is amazing (hit search and look for the title "found 190,000") try and stick with companies that fund their own loans...get a pre approval with the condition of pulling credit, if you are going to shop it (do not let everyone pull your credit) . |
05-21-2005, 03:29 PM | #5 (permalink) |
Join Date: May 18 2005
Posts: 55
Rep Power: 0 | DWight, Seems like youve been given me the answers to just about everything!! Thanks man! What about leasing? Everyone speaks about leasing programs, shouldnt they be much cheaper than financing? WHat kind of rates are offered for leases of beds? Thanks |
05-21-2005, 10:08 PM | #9 (permalink) |
Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 25 | Piece of string? 5.5% with .25 adjustable capped at 2.0%. Or, was it 8 inches??? Limitations of leasing? May pay higher rates. May be ripped off (there are some snakes in the industry - be careful!). And perhaps most importantly - don't have free access to "move" equipment if you decide to switch it out sooner than your lease term, sell the business, etc. But - with the quality companies, and dpending on your financial situation and business strategies, may very well be the best alternative! |
05-21-2005, 10:19 PM | #10 (permalink) |
Waiting Confirmation Join Date: Apr 22 2004
Posts: 3,646
Rep Power: 0 | Leasing...Loans....you cannot give a cookie cutter answer...there are sooooo many variables...unless you are super strong..... traditional financing might not be in your future...so leasing is your option....if you can, stick to leasing companies that loan their own money! I have posted how much I love Terry from Highline Capital and they have filled the void of (Evans Leasing)...they understand the tanning industry and she has such a love of the industry and passion....that she is contagious! |
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