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EQUIPMENT FINANCING

DETAIL PLUS customers are afforded the opportunity to obtain both equipment leasing and, in some cases, contract financing for any equipment or systems the company offers.
 

Most of the companies that provide financing for DETAIL PLUS customers are "non-banking" financial institutions, and are familiar with both the detailing and carwash industries and are more receptive to providing financing than a normal banking or lending institutions.

Contract Financing

If you are seeking contract financing you will be required to provide, in addition to an invoice from DETAIL PLUS for the equipment to be purchased,  the normal financial information such as your own personal and business financial statements; 3 years income tax statements, both personal and business, as well as other information requested by the lending institution.
  

Contract financing is better discussed with the lending group once you have decided on the equipment you wish to purchase from DETAIL PLUS.

Lease Financing

Lease financing is probably the most popular form of financing used by small businesses.  However, it is often misunderstood and too often rejected when it may be the best and easiest form of financing to use.
 

The following information will help you understand Lease Financing and why it may be the best alternative for you to consider.

Why You Should Consider Lease Financing for Your Equipment Purchases

Acquire equipment without tying up capital

Whereas other types of financing usually require hefty down payments, most lease agreements require an advance of only one or two months' payments. Leasing is also 100% financing and can cover the cost of delivery, installation, warranty, etc. Your lease will include everything it takes to put the equipment to work for you with minimal upfront costs.

Would you pay your employees in advance?

How about two, three, or four years in advance? Paying cash for equipment that will be used over several years is like paying an employee for years of service --in advance! Leasing equipment is like hiring employees. You pay the employee a wage for the work they produce during a given period. Leasing provides the same option by letting you pay for the use of equipment as it produces; over time.

Protect your lines of credit

Lease payments have no impact on your credit lines with your bank. Preserve your borrowing power for other business opportunities. If your company is one of the rare ones that has excess capital, leasing preserves your current cash pool and allows it to earn interest.

Simplify accounting

Lease payments are little more than a line-item in your monthly cost of operations; a minimal bookkeeping effort that frees you from time-consuming depreciation schedules.

Realize tax advantages

Purchases are made with after tax dollars; you put the asset on your balance sheet, depreciate it, and deduct the interest portion of the payment. A properly structured lease is usually 100% deductible for most businesses and as such may reduce your taxes. Under new tax laws, leasing can offer you tax benefits that ownership does not. The knowledgeable people we work with would be happy to answer any additional questions you may have.

A fixed-payment shelter from market conditions

If you are old enough, you will remember 1980, when interest rates skyrocketed from 9% to 21.5% in a single year. Unlike bank lines of credit with variable rates, lease payments are fixed for the term of the lease no matter what happens to the market.

Eliminate obsolescence

"The newest innovation" doesn't stay new. Leasing gives you today's best technology and then lets you upgrade when the equipment has outlived its advantage. You can eliminate the hassle of selling equipment at a severely depreciated value

Frequently Asked Questions about Lease Financing

What is a lease?

A lease is a simple agreement between the owner (Lessor) of the equipment and the user (Lessee) of the equipment covering the use of the equipment for a monthly fee (rental).

Why is a lease different from a loan?

A loan is money you rent in order to own equipment. Interest on a loan is the charge a borrower must pay for the use of a lender's money. With leasing you are not "renting" money. You are "renting" (leasing) equipment so you can use it to generate a profit for your business. Because of the fundamental difference, an interest rate (APR) normally associated with borrowing money does not apply to a leasing transaction.

Should every business lease?

 It depends on the business. A growing business is apt to face the dilemma of limited cash flow and the need to add equipment. Leasing can put that equipment to work for you with real cash-flow advantages and without a major capital investment. Established businesses looking to upgrade older equipment may be more concerned with the various other advantages leasing has to offer. Leasing shouldn't be over looked because you can't get straight answers from inexperienced leasing individuals. Many businesses don't consider leasing because they don't understand how it can benefit them. Our knowledgeable financing company representatives will answer any of your questions.

What is the most important benefit of leasing?

The use of the equipment: Operating profits come from the use of the equipment, not ownership of it. DETAIL PLUS will provide you the latest and best equipment, allowing you to work faster, better and cheaper than the competition. Leasing gives you the advantages of leading technology at an affordable cost and gives you many of the benefits of ownership without the capital outlay.

Is there any advantage to outright ownership?

While it's true that some companies with excess cash may find benefit to an outright purchase, most companies hesitate to invest in depreciating assets. Since the elimination of ITC and other changes in tax law, ownership advantages have diminished considerably.

In this day and age it isn't good business sense to make the commitment to ownership when the future (technology and business) can be so uncertain. Conserve your cash and leave your options open. Let Willamette Financial Services show you how easy it is to lease it!

Can leasing improve cash flow?

Yes. By leasing your equipment you conserve cash and maintain existing credit lines. If you use cash or borrow from existing credit lines to buy equipment, you tie up valuable working capital that is needed in other areas -inventory, advertising, personnel costs, etc.

Summary

Whatever your carwash or detailing equipment needs DETAIL PLUS can assist you. And, whatever form of financing, DETAIL PLUS can also provide.