Here we are starting the second quarter of 2023, and already it’s been an interesting ride. Of course the big news was the failure of two Silicon Valley banks. Although looking at the reasoning and details, this is far from a crisis, and more of an unfortunate circumstance (overly simple explanation = rising rates made the bank’s safe… Read More »
I’ve mentioned restrictions quite a bit in this blog. In fact, a post from earlier this year about control over your equipment and assets really drives the point home. All too often, companies enter into financing and leasing agreements with all kinds of draconian covenants and restrictions in the fine print. These restrictions (like blanket liens, minimum bank… Read More »
As many of us figured they would, the fed just raised interest rates again. This time by a half point, the largest single increase in two decades. Many predicted these hikes, and if comments by pundits and economists are to be believed, rate hikes will continue for the foreseeable future. That said, rising interest rates are not all… Read More »
When lenders finance equipment for customers, there is a concept called PMSI. I want to spend this blog explaining what it is. To start, PMSI is an acronym for “Purchase Money Security Interest”, and is very important for lenders, especially those who finance equipment purchases. Essentially, what it means is the lender who pays for the equipment has… Read More »
True story: Once, at a trade show, I was talking to the owner of a regional retail/service chain (12 stores in all, plus a small warehouse) about soft cost financing. We got to talking about “training”, because that’s one of the soft costs that a good equipment financing company will finance. He told me he bought a fairly… Read More »