Try a calculated interest of 35% to 45%. :-( (No, I did not accept) What frustrates me is that most lease companies wont give a rate or payment before they pull a credit report, even if prospect sends them a copy of theirs that was pulled a week earlier. After they pull the credit report, you then have an enquiry against you, and you are stuck. If you turn it down and go to the next leasor, you start with 20 points lower on your Credit report because of the additional inquirey that last leasor made. Obviously, just 1 inquirey on a report wont make much of a difference, But if you already had one or two the last two years (maybe you applied for a circuit city or Target credit card, or a lease the year before), that 1 additional inquirey could infact lower your score 20 points. Its a racket. I just cant stand any lender that make a lending decission based primarilly on a credit score. That 1 inquirely makes absolutely no difference to the applicants credit worthiness. It is a racket. Its funny, one time, I had $50k cash in the bank, $10k on credit cards (with agreegate line up to $12k), and STILL got turned down by 2 leasing companies for a $10k lease app. I had a 650 score, and They replied my Score was to low. The reasons I had a 650 score was that I had more than 50% of my revolving credit used up. (It meant nothing that I paid off and recharded $5k a month on those cards for cash flow, it wasn;t really debt). So, since I had $50k in the bank, I paid the credit cards off. So I wait a month for it to show on my report, my score raises to around 700. Now I go back and apply again for the $10k lease at a third leasing company. I get a reply that I'm turned down again, but this time because I have to many "inquiries" on my Credit report. They say, try again in a years when the inquiries are gone. Go figure, cant win for loosen. Its much easier for an Employee who take a paycheck every month, to get a lease to buy a Cadilac, that is a luxury and expense, than it is for a small business owner to get a $10k lease, that if granted would generate 10x the revenue than the lease payment. I guess that leasing companies think its just to easy for a small business owner to take the money and run, if they want to. Its to hard to collect on, if the business owner is unscrupulous. Compared to a Employee where wages could be garneshed easilly, or a car repossesed. Self employed is simply looked at as a high risk profile to them. Leasing tends to work better for those that are either really wealthy, (who can easilly prove high networth via assets non-related to their business and high income), or have scaled their businesses large enough that they are no longer looked at as self employed, but instead as just one stockholder of a large successful business entity.
Tom DeReggi RapidDSL & Wireless, Inc IntAirNet- Fixed Wireless Broadband ----- Original Message ----- From: "Kevin Sullivan" <[email protected]> To: "WISPA General List" <[email protected]> Sent: Friday, June 04, 2010 8:11 PM Subject: Re: [WISPA] Leasing Companies > I've applied to several leasing companies, mostly for licensed links. All > of > them gave me an appox. rate for a five year term of under 10% per year. > Then, after they ran credit, they came back with a monthly payment but > wouldn't tell me the rate. I calculated it to be over 25% annually in all > of > the cases. When I talked to them about it, they all said that they don't > actually do rates, they just give a monthly amount, since that's easier > for > people to understand. In all of the cases, if we had signed up, we would > have paid more than three times what the equipment cost by the time the > lease was done. One of them even tried that old "Rule of 78" method for > calulating interest. I didn't even think that was still legal in the US! > Two > of them verbally told us the lease was for a $1 buyout, but then in the > fine > print it said we would have to pay, "fair market value", whatever that > means. > > If I ever find a honest leasing company, it'll make my business easier and > more profitable. Until then, we'll continue to grow slowly. > > Cheers, > Kevin > > ----- Original Message ----- > From: "Tom DeReggi" <[email protected]> > To: "WISPA General List" <[email protected]> > Sent: Friday, June 04, 2010 11:08 AM > Subject: Re: [WISPA] Leasing Companies > > >>I would recommend Peer to Peer lending options. (Google peer to peer >> lending). They will end up being personal loans, and likely lower credit >> lines, but there is a much higher chance of walking away with a loan, at >> a >> reasonable rate. >> >> If you meet the financial profile for leasing, Lease Corp of America has >> some of the lowest rates. They do a lot of the Moto 1yr type leases. With >> LCA it wont be an issue that you are leasing "wireless" gear, because >> they >> do that all the time. >> >> A couple tips on leasing.... >> >> If you do less than 5 mil a year in revenue, or have less than 10 >> employee, >> chances are your lease will be qualified by "personal credit rating". >> Most Leasing companies are clueless, and are incapable of making an >> intelligent judgement on their own, and instead rely heavilly on standard >> "Credit Reports". >> If your personal Credit Score is less than 700, or personal revolving >> credit >> lines over 50% utilized, dont bother applying for a lease, you'll >> probably >> get denied.. Work to improve credit score first. >> The price quote you get for equipment (for example whether 30% below or >> above market rate, whether a good or bad deal) will likely have very >> little >> to do with your approval. >> Approval is more about "documentation". On paper, whether you look like a >> low credit risk or not, using default common methods of valuing, without >> an >> expanation needed. >> My personal opinion is WISPs are likely better off working with a local >> banks or private lenders, where they can meet underwriting decission >> makers >> in person. WISPs appear like far less of a risk, when their business is >> explained to the lender. That message will rarely get conveyed adequately >> to >> behind the scene decission makers in traditional large leasing companies. >> Avoid applying for a lease, unless you are confident that you will get >> accepted, because everytime an inquirey is made on your credit report by >> a >> lender, future lenders will question why you might have been turned down >> by >> them, which brings up concern, and that inquirey will be on your record >> for >> 2 years, and nothing you can do about it. Even if you decided to turn >> down >> the loan because you were offered loan shark rates. Leasers know who >> they >> loansharks are, and if they made an inquirey, but you dont have a loan >> from >> them, they now dont know whether you turned them down or they turned you >> down. IF a loan shark wont lend to you, why should they? I've found >> applying for leases to be a very delicate and unforgiving process. No one >> has to convince me on value of leasing, I get it. Obviously, there are >> numerous WISP Members that are successful at obtaining Leases. But what >> I'm >> learning is that they are all more or less exactly the same, in regards >> to >> methods they use to qualify/approve applicants. Although they may vary >> drastically on how well they manage the loan/client experience or >> ethically >> handle the application process, or what lease terms they'll extend. >> >> Tom DeReggi >> RapidDSL & Wireless, Inc >> IntAirNet- Fixed Wireless Broadband >> >> >> ----- Original Message ----- >> From: "Marco Coelho" <[email protected]> >> To: "WISPA General List" <[email protected]> >> Sent: Friday, June 04, 2010 12:36 PM >> Subject: Re: [WISPA] Leasing Companies >> >> >> Any other suggestions? >> >> mc >> >> >> On Thu, Jun 3, 2010 at 11:28 PM, RickG <[email protected]> wrote: >>> Travis, >>> >>> I surprised you didnt mention: >>> >>> Taycor Financial >>> -An Inc 500 Company- >>> 6100 Center Drive, Suite 710 >>> Los Angeles, CA 90045 >>> Direct: (310) 895-7717, Fax: (310) 568-9922 >>> [email protected], www.taycor.com >>> >>> >>> On Thu, Jun 3, 2010 at 7:10 PM, Travis Johnson <[email protected]> wrote: >>>> Be prepared to sign over your company to them if you use them for >>>> anything. :( >>>> >>>> Travis >>>> >>>> >>>> Layne Sisk wrote: >>>>> Here is a leasing guy. We don't lease from him but he provides leasing >>>>> to several of the WISPs that we support. Not cheap but he has money to >>>>> lend out. >>>>> >>>>> Bill MacNamara >>>>> Vice President >>>>> Agility Ventures >>>>> 101 E. Gurley, Ste. 202 >>>>> Prescott, AZ 86301 >>>>> 928.541.0771 Office >>>>> 928.541.0773 Fax >>>>> 928.970.1340 Mobile >>>>> www.agilityventures.com >>>>> >>>>> >>>>> If you need more info let me know. >>>>> >>>>> -Layne >>>>> >>>>> Layne Sisk >>>>> www.ServerPlus.com >>>>> >>>>> >>>>> >>>>> -----Original Message----- >>>>> From: [email protected] [mailto:[email protected]] >>>>> On >>>>> Behalf Of Marco Coelho >>>>> Sent: Thursday, June 03, 2010 1:26 PM >>>>> To: WISPA General List >>>>> Subject: [WISPA] Leasing Companies >>>>> >>>>> Anyone working with some decent leasing companies? We're growing >>>>> faster than our current leasing companies can support. >>>>> >>>>> Marco >>>>> >>>>> >>>>> >>>> >>>> >>>> -------------------------------------------------------------------------------- >>>> WISPA Wants You! Join today! >>>> http://signup.wispa.org/ >>>> -------------------------------------------------------------------------------- >>>> >>>> WISPA Wireless List: [email protected] >>>> >>>> Subscribe/Unsubscribe: >>>> http://lists.wispa.org/mailman/listinfo/wireless >>>> >>>> Archives: http://lists.wispa.org/pipermail/wireless/ >>>> >>> >>> >>> -------------------------------------------------------------------------------- >>> WISPA Wants You! Join today! >>> http://signup.wispa.org/ >>> -------------------------------------------------------------------------------- >>> >>> WISPA Wireless List: [email protected] >>> >>> Subscribe/Unsubscribe: >>> http://lists.wispa.org/mailman/listinfo/wireless >>> >>> Archives: http://lists.wispa.org/pipermail/wireless/ >>> >> >> >> >> -- >> Marco C. Coelho >> Argon Technologies Inc. >> POB 875 >> Greenville, TX 75403-0875 >> 903-455-5036 >> >> >> -------------------------------------------------------------------------------- >> WISPA Wants You! Join today! >> http://signup.wispa.org/ >> -------------------------------------------------------------------------------- >> >> WISPA Wireless List: [email protected] >> >> Subscribe/Unsubscribe: >> http://lists.wispa.org/mailman/listinfo/wireless >> >> Archives: http://lists.wispa.org/pipermail/wireless/ >> >> >> >> -------------------------------------------------------------------------------- >> WISPA Wants You! Join today! >> http://signup.wispa.org/ >> -------------------------------------------------------------------------------- >> >> WISPA Wireless List: [email protected] >> >> Subscribe/Unsubscribe: >> http://lists.wispa.org/mailman/listinfo/wireless >> >> Archives: http://lists.wispa.org/pipermail/wireless/ > > > > -------------------------------------------------------------------------------- > WISPA Wants You! Join today! > http://signup.wispa.org/ > -------------------------------------------------------------------------------- > > WISPA Wireless List: [email protected] > > Subscribe/Unsubscribe: > http://lists.wispa.org/mailman/listinfo/wireless > > Archives: http://lists.wispa.org/pipermail/wireless/ -------------------------------------------------------------------------------- WISPA Wants You! 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