SOURCE CAPITAL AND CONSULTING, LLC
Thank you for your interest in SC&C leasing options. Leasing is a form of financing that is similar to bank financing. There is a lender, a borrower, collateral, finance rate and payment terms. However, leases can vary from a fair market value lease, dollar buyout lease, and financing agreements which truly are a loan with a few differences.
- Faster turnaround. Can be as quick as one day!
- Low Documentation Requirements. Many applications only require a single page.
- Collateral is usually limited to equipment being purchased.
- More flexibility in payment terms.
- Fast turnaround times for approval. Most approvals for a completed package are secured within 24 hours after the lender receives a well documented and thorough application.
- Lease funders’ concentrate on a variety of factors. And these Lease companies differ in what is important in their lending criteria and approval process. Each funder has a different appetite for the quality of the lease credit, the loan to value criteria, the finance rate, the term of the lease and the type of equipment they will and will not finance. When you work with SCC we can guide your lease application in the direction that is compatible to your strengths as a borrower by matching you with a lease funder that fits your needs and your financial position.
- Reduced Documentation. Smaller leases are approved with as little as a one page application, a credit bureau report and an invoice from the lender. Higher dollar leases do require more documentation but still not as much as required by a bank for a loan.
- NO SBA: Many banks want to add an SBA guaranty to every small business loan they make. Doing so has significant advantages to the bank but not to the borrower. Funders make leases without SBA guarantees resulting in a reduction of the time to secure approval, less government oversight and without SBA Fees.
- Lease repayment terms can be shorter than an SBA guaranteed bank loan. SBA bank loans often have repayment terms of seven to ten years – even higher when real estate is being financed. The repayment terms on a lease are usually 24, 36, 42, 48 and 60 months.
- Lease funders take more risk and therefore charge higher finance rates than the typical bank loan. However, some lease rates can be very competitive.
- Source Capital and Consulting LLC can assist you in developing a lease package that fits your needs and provide answers to your questions as you try to understand the challenges of lease financing.
It is also important to understand that even though a lease application has less documentation requirements, all forms requested must be complete and all items requested must be provided. A well documented application speeds up the approval process. Conversely, a poorly documented application will impede the process and possibly result in a rejection. Below are the forms that we use to gather the pertinent information to streamline the application process.
This lease calculator can be used to calculate the monthly payment or the actual interest for a lease.
Click to download our forms.