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  1. #1

    Equipment Financing

    This is my first equipment financing deal.

    Received a proposition letter for:

    Transaction cost: $97,000.

    Lease Structure: Lease.

    Term: 60 months.

    Monthly Payment: $1,962.17.

    My account manager states that this is such a good deal (we matched a previous offer) that neither of us will make money. I don't see how I facilitate $97,000 and I don't make money on the deal.

    The finance company wants a good faith deposit of $1,962.17 (1st month's payment) to move forward. Is this the norm?

    Your input is greatly appreciated.

    Thank you in advance,
    Mike
    msla*****er@sla*****er.com

  2. #2
    I forgot to mention this is an application only offer.

  3. #3
    Looks like a pretty solid deal for this industry. Based on that info, your out-the-door factor is between 7.5 - 8%. Considering buy rates on leases can be much more expensive than that, this seems like a strong offer. I'm guessing the commission is only a point or two. Many leases require between 0 and 2 payments upfront, so this is somewhat standard.

    It's worth taking a look at the contract and seeing if this is a true lease or a capital lease. Also, keep an eye out for tricky clauses (evergreen, interim rent, etc) and what the purchase option, if any, is.
    Last edited by Onepointwhat; 11-16-2018 at 10:37 AM.

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