leaseadvice

Credit card companies/banks base total exposure on the PGs social security number. They all have a certain $ amount that they are comfortable with, there is a good chance that you will get an approval with a much smaller credit limit.

what were you thinking signing documents with a 36% interest rate and $2000 in documentation fees? If you want to blame anyone, you should blame yourself. Always read the documents that you sign.

Unfortuantely what you are trying to finance is not a friendly colladeral for a lease company, there is no resale value to it. You will have really hard time finding a home for that transaction with competitive rates and no personal guarantee.

Can you ellaborate more on "technology 'stuff'"? How much current exposure do you have with other leasing companies? What is the $ amount that you are looking for? Usually leasing companies look at the overall exposure before approving more funds for you with no pg. They will also want to see at least 12-18 months of pay history as well on other non PG leases.

It is always great to see when good things happen for good people. Congrats greywolf.

great topic, any feedback on business voip service would be great

2010 is deffinetly going to be a profitable year, we've done more business in the last 5 months than all year 2009.

They really never stopped issuing to people with really good credit, the limits may have been a little less then what you would have gotten a couple years ago but they really never stopped. Like Discover and Amex was offering discounts to certain peoeple if they payed there cards off in full that would seem like a sign they weren't lending but they still sent pre approvals to people with great credit. JP Morgan Chase, Wells Fargo and Bank of America are still issuing business credit cards with $10k-$50k limits Here is what they look for: Comparable credit - if your highest limit is a target card with a $300 limit, that will be an auto decline...if you have a few cards with $25k+ limits, most likely you will get an approved with a great limit. Number of Inquries on your credit report - if you have more than 5 in the last 2 years and more than 2 in the last 6 months, dont bother appllying, it will be a decline - high risk Credit card + LOC debt - if it is over 10k, not good...if it is over 20k it will be an auto decline. New Accounts - a few is okay, anything more than that is considered high risk. There are also some approvals that are strictly based on relationship banking, if you hold a lot of cash in your personal checking account, I would strongly suggest that you go to that bank to apply for the business credit card. Good Luck!!!

If you have a copy of the original lease agreement it would help. Without seeing the agreement, I can say this: The bait and switch of the buyout terms is deceiving, however, the notification of intent to end lease (where you must notify the leasing company you do NOT want to continue the lease and return/purchase the equipment) is very common. If you do not send them a letter telling them you want to purchase the equipment (through the buyout option in the contract) or return the equipment, most leasing companies have it written in their leasing agreements that they will continue the lease for 12 months. They assume you want to continue leasing, unless you tell them otherwise. This is why it is extremely important to read the ENTIRE contract, and made sure all documents are in the agreement. If you think you are getting a $1 Buy Out, and the $1BO/purchase option form isn't in the lease packet, your in trouble. Even more important, once you close on a lease agreement, you need to actively manage the lease. This means complying with insurance, tax, and payment terms as well as keeping track of termination/buy out dates. Large companies have departments that manage their leases, a LOT more goes into it than the initial contract signature. greywolf - I am surprised that nobody offered you a CFO position yet, great response!!!

What you are applying for/in the process of receiving is called a merchant cash advance, they aren't uncommon. Watch out for fees, you need to do a detailed calculation of the costs (merchant processing costs, in additional to loan repayment/interest), and review the contract and note with a fine tooth comb. Make sure you are dealing with a legit company, not a fly-by-night operation that is going to steal your customer's account information. I would wait until your personal scores recover, try to improve them, and go for a traditional loan/LOC. with a 680-700 FICO and decent financials, you should have no problem obtaining funding. I would have to agree with greywolf as well, when you work with a 15-25% margin, which is what most of the small businesses work with...and 10-35% is being kept by the factoring company, that will have a huge affect on your bottom line.

Hopefully he will share a copy of the contract with us (the board) and I can point some major things to look out for when signing a lease or a finance agreement.

Hi Scott Ohio, Do you care to share the copy of the contract that you signed with us?

His personal credit might not be what he would like it to be, however there is nothing wrong with the industry he is in. If he can find away to get the equipment he needs, with a good business plan he can do very well. Again, nothing wrong with the industry. DJ Duane - unless you know something that I dont, the industry that he is in is high risk/restricted industry. That means that he has to score a lot higher than any other industries to qualify for a loan/lease. If you saw the default numbers of that portfolio, it is a lot higher than everyone else. It is restrictd just like: non franchised restaurants, long haul trucking and construction.

sorry to dissapoint you, but it is not going to happen. Too many issues and a high risk industry.

It is pretty good, if you are buying under a promo interest rate. At another company, we just replaced 2 racks and about 30 desktops, we were able to lock in @ prime for financing. The entire project was around $300k, so it is going to save the company a fortune. However, if you are buying without a financing promo, don't go near DFS. 26% APR when Prime is 3%? Out of their minds. It doesn't report to personal (even with a PG), and it does report to EX/EQ. They may report ro D&B, perhaps with time, similar to Citi? Thank you greywolf, any other feedback?