Financing made simple, fast & cost effective
Why Buy It When You Can Lease It?
Time savings add up to more sales! Imagine having more time to make more sales or do more jobs without working harder than you do now. Rug Washing Equipment not only save you time while projecting a professional rug cleaning image, they help you to grow your business.
Banks definitely have their place, but they’re not the only solution. If you have plenty of cash, if you want a good rate on a home loan, or if you already have an extensive line of credit, the bank may be your first choice. But banks do have their limitations.
We want to help you make a completely informed decision regarding leasing versus buying with a typical bank loan.
We have teamed up Direct Capital to offer LEASING and financing options to our customers. Direct Capital in business for more than 20 years, Direct Capital was recently acquired by CIT Bank and now have financing capabilities that are stronger than ever. They are the fourth largest independent finance company in the country and hold an A+ rating with the Better Business Bureau. They offer some of the most competitive options within the financial market with rates. As a direct lender they have one of the widest credit windows within the industry with the ability to go as low as D grade credit customers and get them approved.
We chose Direct Captial because as a Direct Lessor, they can provide a full range of financing products to meet the needs of our customers:
- Financing on new & used equipment from $2,000 – $1,000,000
- Terms – 12 to 72 months available
- Several end-of lease options:
- $1 Buyout: Available as a lease or an Equipment Financing Agreement (EFA);
- Fair Market Value: Get a lower lease payment. At the end of the term, purchase the equipment or return it;
- Net Terms: Buy now and pay later with financing for 30, 60, or 90 days.
- 100% financing available – including installation, shipping and etc.
- Approvals through a one-page application
- Programs for start-up businesses
- Programs for businesses with compromised credit
- Financing only available to U.S. and Canadian customers.
Please read the chart below to find out why leasing is the way to go. The advantages of leasing over buying.
The Advantages of Leasing Over Buying
|BANK LOAN||THE EASE OF LEASING|
|Interest Rates||Floating rates can go sky-high.||Fixed rate with fixed payments.|
|Credit effects||Reports all credit issuance to the major credit bureaus. Effects future borrowing power.||Reports only of the borrower does not pay as agreed. Minimizes effects.|
|Opportunity Costs||Ties up bank lines, thus prohibiting future investment.||Frees bank lines and cash for future investments.|
|Requirements||Financial statements required on almost bank applications over $10k; often requires annual updates to maintain loan; additional security required, ie: real estate.||Financial statements not required for most transactions up to $30k.|
|Down Payment||Typically 20% to 30% required.||100% financing available.|
|Hidden Costs||Compensating balances, other bank charges, loan covenants.||None.|
|Effective Cost||High due to longer depreciation schedule, larger down payment, adjustable interest rate, and other $$$||Low due to tax benefits, no down payment, longer lease term, and no compensating balance requirement|
|Sales Tax||Must be paid in advance.||Within monthly payment.|
|Tax Benefits||Depreciated over the useful life of the equipment.||Usually 100% deductible over the lease term.|
|Expensing||Can only expense depreciation and interest.||Can expense 100% of the payment.|
|Financial Reporting||Carried on balance sheet as debt, negatively effects retained earnings and ratios.||Not required to be reflected on balance sheet as debt.|
Leasing lets the rug equipment pay for itself! Compare your lease payments to the hourly rate you can make with your rug cleaning equipment. You will discover it makes sense to let the equipment pay for itself. With only a few rugs and couple hours of cleaning per day, you have covered the cost of the lease.
Financing your equipment through DIRECT CAPITAL can help make your business more profitable. Businesses must have the latest equipment to stay competitive. With technology ever changing, this goal becomes extremely expensive.
60 MONTH PROGRAM EXAMPLE
60 Months no Interest: Divide the equipment cost by 60 to calculate the monthly payment. Customer pays first and last payments to commence the lease with 58 payments to follow.
Example: Lease amount is $24,000 – Divide by 60. Lease payment is $400 per month. Customer pays the first and last payment ($800.00) up front and then has fifty eight payments to follow. The cost of doing business is only payment of $400 plus applicable documentation fee.
Rug Washing Equipment Affordability Chart
|Equipment Cost||Monthly Cost (base on 60 month)||Daily Cost (30 days)|