What is the Interest Rate ??

This is not only the most common question asked by a customer, but usually the first one before even hearing about our program. As consumers, we are so concerned with the “magic” percentage rate and have already decided what we believe is low as well as what is considered “off the charts”!

The question that should be asked is what the benefits of this type of financing are and how it affects your bottom line – profit.

Payments on an Equipment Finance Agreement are not comprised of principle and interest; however the rate is fixed. The tax incentive allows the consumer the ability to write off the entire purchase price instead of just an interest portion. Tax code Section 179 discusses the specifics. By deducting the full equipment cost, the amount being paid for the equipment is lower.

Conversely, Loans do not have a fixed rate and are tied to a market rate which may fluctuate over the term. They also may contain restrictions requiring the customer carry certain financial ratios. These ratios would possibly restrict the customer’s ability to borrow future funds. In the event the customer violates one or more of the covenants, the lender has the right to demand payment in full of the outstanding loan amount, even though the loan payments have been made on time.

Please call us today at 800-449-0674 to learn more about how this type of financing can benefit your bottom line. or APPLY risk free: https://www.allianceleasing.net/apply-now.html