- Buy Or Lease
- Credit Approval
>What is better? Lease, Loan or Cash?
>Do I have the option of loan financing as well as leasing?
Yes. In most cases however, we find that leasing presents more options for our clients. Straight financing usually comes into play when transactions are larger and there are potential lender liability issues. We find that, once educated, clients clearly see the benefits to leasing.
>Why Leasing or Loan Financing Over a Cash Purchase?
Leasing/Financing is a way to spread out the costs over a set amount of time. Allowing the equipment to pay for itself in your business and giving you increased buying power. Additionally there are Tax advantages that could allow you to depreciate equipment faster and defer or avoid taxes in your business sooner than cash.
Let your cash work for you, by making sure that you have reserves to handle ups and downs of your business and take advantage of opportunities. Buy things that appreciate with cash and finance assets that depreciate.
>Why not use my bank?
Bank Financing and Equipment Financing are not the same. Many business owners have the misconception that only working with their Bank will be an advantage to their business and help them grow.
-A Bank needs more security – Banks will generally want more guarantees from your business or personally;
-More collateral – Banks loans typically encompass more than assets than just what you are buying;
-More reporting – you may be required to report financials to the bank monthly or annually.
-Lines of credit and typical Bank loans are demand loans, meaning the Bank can reduce or revoke the loan at any time.
>Can I pay out my lease or loan early?
You can always pay out an equipment lease early. The cost is typically the remaining number of payments in the term. For example if your payment is $1,400 per month and you have 12 months remaining, you can buy out the lease for $16,800 plus your nominal buyout (usually a $1/$10/%). Just ask us for a payout statement and you’ll get the exact amount.
Unless you are upgrading or selling for some reason there is no financial benefit to paying out a lease early. If you are upgrading, replacing your lease with the lender is a great way to get what you need and there are often provisions in the lease to help you do that.
For a loan, there are usually well-defined options for payouts that could involve pre-payment options, prepayment penalties (charge for ending early) or termination options. The benefit of paying off a loan early could save you money on interest, improve your cashflow or allow you to sell the asset.
>What is the Difference Between a $1 Buyout Lease and Loan?
Similar to a $1 buyout lease, a loan for the equipment places the emphasis on ownership. In both cases, when you make the final payment at the end of term, you will own the equipment and there is no uncertainty about the value of the equipment at the conclusion of the lease.
>What is Patron West?
Patron West is a privately owned Canadian equipment leasing and finance brokerage that arranges asset based financing for businesses across Canada. About Us
>When would I call Patron West?
Any time you are purchasing new or used equipment or vehicles for your business, need capital for heavy repair financing or even re-financing existing assets to lower the monthly payments. Our account managers will help you determine what your best options may be.
>Where does Patron West get its money?
Patron West works with Canadian lenders and lessors who have a long standing history of integrity in their respective market. These lenders use agents and brokers to distribute their leasing/financing services. Lending sources range from large schedule A banks and credit unions to smaller private lenders.
>How long does it take for a credit approval?
Provided we have the credit, financial and asset information we need from you, a credit approval can be as fast as an hour and generally within 24 hours.
>Can I get a pre-approval to go shopping and know my limit ahead of time?
Yes for sure. Get pre-approved and go shopping to take advantage of the best deal.
>Why don’t I just talk to the lenders myself – I don’t need an agent or broker?
In most cases Patron West utilizes lenders who only distribute their financial products to agents/brokers (similar to the insurance industry). Our clients stay focused on running their business and we deliver “best in market” lease or finance options with NO OBLIGATION.
>How are rates and terms determined?
Each client will be offered rates and terms which best reflect their financial position and purchase decision at that time. Rate can be important but for many clients it is only one factor in determining value.
Rate is ultimately determined by your time in business, financial statements, credit history and the asset to be financed and is a reflection of risk of repayment of the lease.
Rates and Terms are influenced as follows:
Asset – The asset type and value are the main security for any asset based financing. Higher valued assets are also usually higher demand assets such as trucks and trailers.
Business – your business’s credit score, revenue, payment history, cash flow and years in business will positively or negatively impact rates and terms. Corporate approvals can stand on their own without personal guarantees.
Owner(s) – your personal credit, your income, payment history and other debts will also positively or negatively impact rates and terms.
>How does Patron West make its money?
Similar to the insurance business, Patron West is paid by the lenders directly.
>Will using Patron West affect my personal or business credit rating?
No. In fact, Patron West will go above and beyond to make you aware of anything we see on your credit bureau and provide strategies for improving your score.
Any Other Questions?
Call 1-888-435-4171 or email email@example.com
>Can I purchase equipment on-line or from a private seller?
Yes, we do this all the time. Patron West will go one step further to make sure the equipment AND the seller are clean and that there will be no problems with liens or equipment charges after the sale.
>What equipment and amount qualify for Patron West’s services?
Patron West provides financing for nearly all types of equipment and vehicles for your business, with a particular focus on industrial and transportation sectors. The minimum financing is approx $20,000 and there is no maximum.
>What is a Residual?
The residual value of an asset is the estimated amount that an asset’s owner would earn by disposing of the asset, less any disposal cost at the end of lease. With residual value, it’s assumed that the asset has reached the end of its useful life. Typically residuals are assumed to be zero, but can be up to 50% of the purchase price, based on usage, or a predetermined value for established asset classes like trucks and construction equipment.