The pandemic environment has affected many things. Perhaps surprisingly, one of the effects derives from the Fed’s desire to assist the economy in any way possible. In particular, interest rates which were already at historical lows are now even lower. As a result, monthly payment quotes for commercial equipment are at their lowest in many years.
As the economy has hit some very serious headwinds, some industries have fared better than others. Regardless, we continue to provide financing for the full range of businesses out there.
Funders have tightened their requirements in many instances. In general, FICO scores need to be higher and “Application Only” credits are limited.
But, for those on solid ground, the factor rates have never been better. In a hypothetical situation, where a $150,000 piece of equipment is being financed over a 60-month term, the monthly payment quote would be $127 less than it was just a few weeks ago. (Note, this calculation is based on the fourth-week-of-June factor of .01872 vs. .01957 in early June, “application only,” 10% purchase option.)
So, if you’re thinking of making an investment, we invite you to give us a call to explore your options. With over 27 years of experience of lending to the component manufacturing business, we know the equipment, new or used, and have worked with all of the major names in the industry.
We encourage you to take advantage of lower factors. Feel free to contact us at 412-262-3225 to learn how we can assist you during this time. We are here to help.
Acceptance Leasing and Financing Service, Inc. was established in 1992 by Carl Villella, CLFP, and is located in Moon Township, PA, near Pittsburgh.