financing
FINANCING
YOUR KETTLE COOKER
We
offer financing on all our Kettle Cooker packages, through 3rd party
national lending institutions familiar with our equipment, most generally
in the form of lease/purchases. In truth, you will likely get
a better interest rate through your local bank, credit union, or home
equity loan type financing...if this is something that is available
to you. However if these avenues are not available to you, or
you have a banker that's only comfortable making auto and home loans,
then this is a good financing option, and the rates are reasonable for
this type of financing ie: equipment financing on a "start up"
business.
As
with all financing, good credit is required. While "stellar
credit" is great, it's not a requirement. We've been able
to procure financing with average credit, keeping in mind that bankruptcies
within 2-years, and recent slow pay are deal killers. Terms generally
require a minimum down payment equal to two monthly payments, depending
on the strength of your credit score, plus $150.00 - $250.00 documentation
fee for credit report, filings, etc. The balance is paid over
a period of 12 to 60 months, and there are programs for seasonal adjustments
or "no-payments for 60 days" etc.. Physical damage/loss insurance
on the equipment package is required, during the time the lease/purchase
is in force, and can be included in the monthly lease payment, depending
on which company you're financed through. You have the option
of paying the lease/purchase off early, without pre-payment penalty,
at any time after 12 timely monthly payments have been made, which we
feel is a very positive benefit, in that our cookers generally pay for
themselves rather quickly.
Lease/purchase
is an excellent purchase option, depending of course on your cash liquidity
and personal circumstances. It permits you to buy a cooker at
a minimal cash outlay, and utilize the cooker to make the payments.
Most financing requires a 20% to 30% down payment, whereas a lease/purchase
allows you to hang on to your working capital. It also allows you to
deduct the full lease amount against income, for tax purposes, or you
can capitalize the asset and depreciate it...up to 100% write off in
the first year if you opt to take a Section 179 tax deduction. The purchase
price at lease end is somewhat negotiable when you take out the lease�but
in most cases it is $1.00. Another plus is that lease/purchase
financing generally doesn't show up as a liability on your credit report,
thus not affecting your credit score...provided of course you make your
payments as agreed.
Because
this not a true lease, but rather a lease/purchase designed to help
you purchase the equipment package, the lease is a "guaranteed
lease" whereby it obligates you to make all the lease payments,
subject to the no-penalty pre-payment option after 12 months, the same
as if you were to finance through your local bank, credit union, etc.
You also have the option to make a larger upfront payment, or finance
just part of the equipment package, if you have the funds and desire
to keep the monthly payment down. I have set forth an example
of a typical lease/purchase, based on 60 months:
Purchase
Price on Complete Mobile Package with Model 115TS cooker, complete
tent setup and 6'x12' tandem trailer |
$25,000.00 |
Initial cash
outlay - First and Last months payment and documentation fee est. |
$1,400.00 |
Monthly
payment (approximate based on good credit and 60 months) |
$580.00 |
Buyout at end
of lease |
$1.00 |
Note:
There is no
pre-payment penalty on early payoff, after 12 monthly payments
are timely made.
Estimated payments
based on Start Up rates as of January 2008.
We
invite you to call and discuss our lease/purchase financing options.
|