It may seem tough to obtain financing for the things you need in today’s economy. However, if you want to finance a new heating and cooling system in Atlanta, it is very easy to obtain financing and get the system and service you desire. Getting a new air system can be a costly process and may not be in your immediate budget. To make this process more affordable and easier on the customers, companies are partnering with major lenders to make financing available for their services.You may be wondering how to obtain this type of financing if you are in desperate need of a new heating and air system. The answer is to pre-qualify for a loan. This can be done with or without planning. You may choose to apply for a loan through a finance company without contacting a heating and air condition service. Another option would be to research available companies in the Atlanta area and apply for pre-approval through the financing company they work with.To see how much financing is available without doing any research, choose a financing company with a good rate and fill out an online application. The Pre-Approval process could take minutes to days depending on the chosen finance company. When the process is finished, you will know the credit decision and the amount of money available for financing. If for some reason, you do not qualify, you may want to get a credit report to see what is preventing you from receiving financing and talk to the finance company about what you can do to resolve the problem.If you want a more accurate and quick approval, it might be better to know who you will be dealing with and who their financing partner is. Begin by researching companies available in the Atlanta area and determine which ones provide financing. Once you have a list, pick the one that best suits your needs as far as convenience, quality of work, and experience. Ask the company themselves how to get pre-approved for financing and they should be able tell you where to apply and get pre-approved. Once you have been pre-approved, it will be easier to get an estimate of the work to be done based on the amount of financing available. By going with the financing partner of the heating and air conditioner service, you will get faster results and the most accurate loan information because there are no middle men.The steps required to obtain approval are the same no matter how you go about it. Getting pre-approved for financing is normally a simple process, takes little time, and can be done securely online. It only takes a few minutes to fill out the application and get the pre-approval results. By getting pre-approved and obtaining financing you guarantee yourself quality service by a HVAC contractor and certified work and maintenance. This will put your mind at ease and make the process easier and the end result more enjoyable for you and your family.
Obtaining in Home HVAC-Financing
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Your Bank and Business Financing – Reality Check
Business owners and managers want to compare equipment finance companies to their bank and for a good reason; a bank is a company’s first point of reference when borrowing money or financing equipment or an expansion project. A bank is the most obvious place to start and a secure place to store your money and use their multiple services. But what a bank does not do well, both historically because of their structure and the recent tightening of the credit market, is offer business financing for capital assets (equipment). Yet many people get confused when looking for an equipment loan because they are not seeing the whole picture; this is a case where you definitely want to compare apples to apples to get the best results.Here are a few points to compare; these are not set in stone but based on years of experience, these trends apply a majority of the time.1) Total Dollars Financed – banks normally require that you keep a balance of 20% or 30% of the equipment loan amount on deposit. This means they are only financing 70% or 80% of your equipment costs because you have to keep a certain amount of YOUR money in a fixed account for the duration of the loan. In contrast, an equipment finance company will cover 100% of the equipment including all “soft” costs and will only request a one or two month prepayment. No fixed deposits required.2) Soft Costs – banks also will normally not cover “soft” costs like labor, warrantees, consulting and installation which means these costs come out of your pocket. An equipment finance company will cover 100% of the equipment price including “soft” costs and some projects can be financed with 100% “soft” costs which no bank would ever consider.3) Interest Rates – this is the most popular question in the finance world; what’s my rate? If the bank requires 30% deposit in a fixed account then that automatically raises a 5% interest rate to a 20% rate. Now people will argue that you get that deposited money back at the end of the term but that is money which you do not have access to and has an opportunity cost associated with it. Equipment finance companies target their financing rates between 3-5% for cities and 7-9% for commercial financing which is a real fixed rate and not under-stated as the bank rates can be thus independent finance company rates are very competitive with “true” bank rates.4) Process Speed – banks often take weeks to review and approve a finance request while independent finance companies normally only take a few days and can work much more quickly. Finance underwriters only review business financing while a bank has other types of requests clogging their channel.Banks also have many more levels of approval and review to pass while independent finance companies normally only have two, underwriting and credit committee. Even with complicated deals, the finance company’s process is always faster.5) Guarantee – banks require, as a standard part of their documentation, a blanket lien on all assets, both personal and business assets are used as guarantee against default on the loan. Your business assets, your home, your car, and your boat can all be on the line when entering into a bank transaction. This may also be the case with an equipment financing company but if your business operation is solvent then only your business will be listed as collateral and not your personal assets; this is known as a “corp only” approval.6) Monitoring – banks require yearly “re-qualifying” of all their business accounts which means on the anniversary date of your loan each year, you must submit requested financial documents to assure the bank that everything is going well and nothing has affected your business in a negative way. Finance companies do not require anything during the term of the loan or finance as long as the monthly payments are made on time. Nobody will be checking into your business or policing what you do.When comparing your bank financing to an independent equipment finance company, you have to make sure you are evaluating all the key parameters, not just one. Clearly, the fine print and terms of the transaction are more important than the big numbers. Banks work well within their space but have proven time and again not to be as flexible or solution-oriented as an independent finance company which solely focuses on business lending can be.
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