| |
LOAN |
LEASE |
|
RATES |
Rates are usually floating
and based on the prime rate or some other
index such as LIBOR. As the index fluctuates
so does your monthly payment. This is an
advantage during periods of falling interest
rates but can be a disadvantage when
interest rates rise. |
Rates and payments are
generally fixed for the life of the lease,
unless your lease has special provisions. A
lease is the best choice if you expect rates
to rise. |
|
AMOUNT FINANCED |
Banks will generally only
lend a portion (75%-90%) of the equipment
cost - not including soft costs, such as,
shipping, installation, training, etc. This
is not a problem if you have extra cash to
invest but not good when cash is tight. |
Your complete purchase is
financed 100%, including soft costs and
sales tax. Your out of pocket expenses are
usually limited to only first and last
month’s payment. New Leaf Funding can cover
the deposits most vendors require to place
your order. This is a good option when cash
is tight. |
|
EXTRA COSTS
OR FEES |
Banks use fees to boost their
return on your loan or commission for the
representative. You might encounter
application fees, origination fees, schedule
fees, funding fees, or closing costs. Over
and above your down payment you will be
charged expenses associated with approving
and executing your loan application. |
With the majority of all
small ticket equipment leases there are no
origination fees, no down payments, and no
closing costs. Our documentation fee is
minimal depending on the size and difficulty
of your transaction. New Leaf Funding does
not charge any application fees. |
|
AVAILABLE TERMS |
Banks tend to be less
flexible than leasing companies because most
seem to offer a “take it or leave it?
program so you either fit in their box or
you don’t. This is not good when you need
flexibility or options. |
With a New Leaf Funding lease
you choose the terms, you chose the purchase
option, and you choose the amount you want
to lease. (12-60 month leases are most
common) Custom terms can easily be arranged. |
|
EQUIPMENT TYPES |
Banks will not finance
equipment that they believe has limited
collateral value. Some banks will not
finance used equipment. |
New Leaf Funding has the
ability to finance almost any and all
equipment types: both new and used. |
|
COLLATERAL |
Banks usually secure their
loans with additional collateral such as,
real estate, other equipment, inventory, or
receivables. Its common practice for banks
to file a blanket lien against all assets of
your company. |
With most leases the only
collateral required in the equipment being
leased. |
|
EASE OF APPLICATION |
Regardless of the amount
requested banks will not even begin to
consider your request until you supply them
with a full financial package. (Both
personal and business information is
required). |
Our business is based on
making the financing process convenient for
our clients. Odds are that New Leaf Funding
can approve your lease with just the
information provided on our simple one page
application. |
|
SPEED |
Banks are notorious for slow
credit decisions, it can take weeks to
prepare your request and bring it to the
credit committee for review. |
New Leaf Funding will send
terms to you within 24 hours of receiving
your completed credit application. |
