LEASING - When it makes sense for you

[sunsally]

As the Vice-President of Highline Capital, I talk to people everyday about money, equipment, financing, and figuring out the best options for them

Leasing is a good option for a LOT of people. Highline is by far the largest "direct lender" working in tanning. That is -- it is our chairman's money! So we don't shop your credit around to a bunch of banks, and don't have to abide by THEIR rules. Our money - our rules. So for many, this means we can make things happen that others can't!

Being direct means we also control the rates - and keep them fair! Don't go by what someone TELLS you - figure it out yourself! I've seen deals where someone was "told" they were getting an 11% rate -- and it was 42%! When I talk to clients, I tell them the payments they can expect -- before we even run their credit! I have nothing to hide - I KNOW we offer the lowest rates in the industry!

So -- Why lease?

1. SAVE YOUR MONEY FOR THINGS YOU CANNOT USE SOMEONE ELSE'S MONEY FOR - Leasing your equipment, where your equipment is the "collateral", leaves your personal cash, a home equity line on your house, your credit cards, money from friends and everything like that OUT of the picture! That way -- if you ever hit a low spot down the road -- those options are still there! Tanning is a seasonal business - want to make sure you save your CASH FLOW for when you need it!

2. LESS MONEY DOWN - if you go with bank loans, often they expect you to put as much as 30% down! With Highline, we ask for 1st and last payment - which is about 3-5% depending on which program you choose!

3. FAST & EASY - At Highline, we can process your application for under $100K in a couple of hours! Need more? Send over a few more pieces of information (not a 100 page business plan!) and we'll have an answer within a day or two!! No waiting weeks and months on pins and needles!

4. PAY AS IT PAYS YOU - The day you open - your equipment hasn't made you any money yet! Why buy it all up front and have "your" money sitting in inventory? With a lease, you have fixed payments over 3-5 years and you can MAKE money to pay the payments along the way!

5. DON'T GET NICKEL & DIMED - With a lease, you can add in up to 20% of "soft costs" above the cost of your equipment. So delivery, installation, extended warranties -- even a lotion start-up inventory! Keep the money for those things in your pocket!

6. TAX ADVANTAGES - Consult with your accountant, but most lease payments are deducted as an operating expense, reducing the amount of taxes you'll owe!

7. KEEP YOUR CREDIT, KEEP YOUR HOUSE - Most lease payments are NOT reflected against your personal credit. And - at Highline, we do NOT ask to put a lien on your home! So just because you own a business it does NOT mean you have to give up all your flexibility over the next 5 years to buy a car or home, sell your home, etc!


Look for our Banner, as a Sponsor of Tantalk.

I personally am a salon owner, and have sold equipment and consulted with salon owners over the past 5 years. I'm happy to talk to anyone about their plans, and help give guidance about the best ways to go for YOUR business!


Ann Wiggins Noe

VP of Highline Capital

www.highlinecapital.com

anoe@highlinecapital.com

877-422-4100 x 250

	First Merchant Funding

	Superior UV

[navigatin1]

If you want sound advice and info from a straight no BS shooter, I HIGHLY suggest you talk to Sunsally! She will tell it like it is and her info is dead on!!!!

[engfant]

"7. KEEP YOUR CREDIT, KEEP YOUR HOUSE - Most lease payments are NOT reflected against your personal credit. And - at Highline, we do NOT ask to put a lien on your home! So just because you own a business it does NOT mean you have to give up all your flexibility over the next 5 years to buy a car or home, sell your home, etc!"

So what you are saying is that you WON'T be pulling a credit report?

[sunsally]

You pull a credit REPORT - this tells the lender what your FICO score is, how 'obligated you are', if you have any collections reportings, etc.

In addition, if you are an already established business, they will look at any reportings, if any, for your business. Although for some reason, very little in tanning seems to show up there. Most landlords, utilities, etc don't report to these agencies.


However, that said, if you take a lease, while they check your personal credit to GET the lease, the lease obligation itself does NOT get reported on your personal credit. The lease is to the "business" - even though the owner of the business is a guarantor.

That means -- if you go to buy a car or a house, they don't say "Oh - I see you have a 100K lease for your business too -- that is too much, we think you are overextended".

Similarly - if you use a HELOC (Home Equity Line of Credit) to buy the equipment for your salon -- and then want to sell your house -- you have to PAY OFF THAT LINE OF CREDIT. If you had it on a lease, you could keep running your business as is - and do whatever you wanted to do with your housing situation.

	Superior UV