Category Archives: General Finance

Because thats what we do here

Equipment leases – Capital Lease vs Operating Lease structures

Let’s continue our discussion on equipment leasing. Last time, I gave a broad overview on the two major lease types, and then a bunch of leases that are commonly used. Today, we’ll look at the two major lease structures, and discuss the advantages of both: Let’s start with a Capital Lease. A capital lease is where the company… Read More »

Credit card rates vs. auto loan rates vs. mortgage rates… why so different???

Last time, I talked about equipment financing rates, and why banks may sometimes have a lower rate than other lenders due to the fact that the bank lessens their risk by demanding collateral and tying up accounts. So let’s stay on the rate topic and look at other types of lending, and why rates are what they are.… Read More »

What makes an equipment finance rate?

I’d like to talk a little bit about rates today. Because, in a way, a rate, particularly on equipment financing, is the “price tag” of the deal. Just as one compares prices between stores, one compares rates when shopping for equipment financing.  But it can be misleading. Here’s why: In theory, with most commercial equipment lending, all rates… Read More »

“Equipment as Collateral” – Not always as good as you think

I was asked by a friend about equipment financing and collateral and such, and he remarked “well, your loan is secured by the equipment, right?” And I answered “sometimes”. Which then prompted an explanation (I’m a great conversationalist at the party, aren’t I?) It is true that equipment financing can be similar to automobile financing in terms of… Read More »

When looking to offer business credit, watch out for lead aggregators

In my position, I talk to many business owners who manufacturer, distribute, or otherwise sell equipment. And most of them are small enough that they really don’t have an in-house financing department. Meaning their B2B customers pay cash (or otherwise arrange their own equipment financing.) Naturally, these companies would like to offer credit. So they look on the… Read More »