ADK now makes it easier to acquire our products and solutions. Following in our tradition of service and support you can now lease your ADK products directly through First Option Capital.
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WHY FINANCE?
2009 The Economy + Benefits of Leasing
Due in part to the major shift in the economy our industry is now more than ever before realizing a very high customer demand for a payment or finance option just to consider making the purchase.
80 percent of all U.S.A. based businesses lease equipment & IT solutions in one form or another with more and more businesses doing so because they view leasing as their best option for financing a purchase with the lowest initial or up front cost of ownership.
Cash in no longer "King", this combined with many businesses not having enough working capital available requires alternative means for funding a new project, upgrading to new technology or to compete for the new business in general.
Leasing Versus a Bank Loan, Line Of Credit or Credit Card
Bank loans & business lines of credit are extremely tough to get approved for these days let alone the hassle and amount of time it takes getting through the paperwork just simply to apply
Banks usually want full financials for the last 20 years, ok not really but at least 2-3, they also require personal guarantees from all owners over 20% per the company
The debt shows up on the owner's personal credit as unsecured or secured debt. This reduces the owners FICO scores and credit availability. If the owner wants to buy a home, they very likely will need the bank to subordinate the debt to allow the owner to consummate their mortgage.
Most traditional bank loans require an initial deposit between 20 to 30 percent and in many cases the payment or rate is not a fixed rate as it is with leasing. Banks often have additional annual fees and in many cases they charge an additional point or two on the total financed transaction amount.
Bank covenants are very strict versus traditional lease terms. Economic times are tough and bills are harder to pay, the business would be much better off on a Corp only lease with a 3rd party firm if possible and NOT with your "lifeline" for capital (the Bank) !
Credit card purchases incur revolving debt for the customer and as well as percentage fees of up to 5 percent of the total transaction cost.
Many businesses these days are discontinuing credit card purchases, this due in part to a reduction in available credit by the credit card co. or bank as well as the general fear and unknown's with today's overall credit card and banking environments!
Recapping + a few benefits of leasing
Leasing provides businesses a low initial out of pocket cost per ownership for new technology and helps businesses upgrade to the best possible technology & services available. Why cut back, or compromise on production and performance quality due to lack of liquidity?
Leasing makes more business sense versus paying large lump sum cash outlay's, this also allows businesses an upgrade path to new technology while having the solution pay for itself monthly and over time
Wide variety of tax advantages, please consult your tax advisor
Preserve working Capital + Bank Lines of credit
Low initial investment or cost of ownership + 100% financing in most cases
Leasing is off balance sheet financing + fixed rates + no blanket asset liens
A 1 page lease application submission initiates the a pre approval phase
The First Option Capital Team collectively has over 30 years of Media, Broadcast and IT equipment solution financing & consulting experience. We are 100% dedicated to the Industry, our Vendor Partners, and their Valued Customers as well!
Please ask your ADK Pro Audio representative about us, feel free to review the information within our website and contact us anytime with questions, or to initiate an equipment lease pre approval.
First Option Capital Contact:
Larry Shultz National Sales Executive
P: 800-603-3945 ext. 229 Direct: 949-900-6303
E: larry "at" firstoptioncapital.com Fax: 949-900-6304
