tanu01

Yes it was $100,000k. Kevin just for your info, Alot of people in this industrie have been terribally ripped by leasing companies. So expect some harsh questions. I personally have it both ways.
Bob

engfant

Problem is, everyone shoots for $100K cause they think write-off = free.

tanu01

To some people its just donkey feed
Bob

CapitalFunding

Quote:
On 2004-09-23 11:13:00, tanu01 wrote:
Yes it was $100,000k. Kevin just for your info, Alot of people in this industrie have been terribally ripped by leasing companies. So expect some harsh questions. I personally have it both ways.
Bob


I can appreciate NOT wanting to get ripped off. I think questions = a savy business person and expect alot of them.

sizzlestan

Leases suck. I was going to do a lease on this Magic Tan booth. A 36 month lease with my credit score being above 700 (which is amazing) had an APR of 38.65%. You are better taking out a home equity loan, run up every credit card you own or borrow from a bookie before you lease. I now know why alot of leased bed salon owners go bankrupt - the lease companies bleed them dry over the life of the lease.

Trust me - make leasing your last option. If you have a 401k or a stock brokerage acct you would be better to sell and pull out the money then pay a lease company. What stock is going to guarantee you 30%+ plus over the next 3 years? Not one!

CapitalFunding

** THIS WAS POSTED ON MY ANOTHER THREAD **

Sizzlestan - Even IF you are were a startup business you should NEVER have to pay that much for a lease??? Which leasing company have you guys used that seem to want to bleed you dry?

Here is a recent example of a customer who Purchased as Classic Turbo 600. This was approved in a day with only an application and bank statements. They have been in business for 2+ years , have good credit (not as strong as yours) and a solid bank balance. They financed $19,900 FMV 10% for 36 months. They put down first/last and the processing fee and they have a brand new revenue maker. The monthly investment was $614.10.

It costs them less than 4% to borrow the money annual before any tax benefits. PLUS it does NOT show up on their credit report!

In my opinion you did get taken advantage of by whoever tried to offer a 38.65% APR.

sizzlestan

Company was Lease Process out of Colorado. Perhaps they are the bad guys and you are alright. All I know if I still have a very bad taste in my mouth. These lease companies pray on new salon owners and between the bed companies trying to take all the $ off the table and the lease companies they are in bed with there is no wonder salon owners fail. At least I am in a position where I have other avenues to use. We own our home, we have cash in the bank and we could always cash in stocks. At the 38%+ interest who wouldnt?

Also, I love the lease companies catch phrase that you can write the WHOLE amount off. Any CPA can depreciate a tanning bed or MagicTan booth over a 3 year period. Its not that complicated.

People, do your own homework, question everything and if it works for you - do it. If you think someone is trying to bend you over the table RUN RUN RUN AWAY!