The following is a list of questions that are asked most frequently by our Customers. Please don’t hesitate to give us a call and speak to one of our courteous Key Credit Lease/Financing specialists who will be happy to answer your questions.
What is the benefit of a Pre-Approval? Getting pre-approved for equipment acquisitions assures that the money is available whenever you finalize your plans. Getting pre-approved is easy. Just fill out the credit application, have the appropriate person(s) sign the credit release section, and fax it back to us. Approval is usually within a day.
What do I have to do to begin the Credit Approval Process? Just fill out the credit application, have the appropriate person(s) sign the credit release section, and fax it back to us. We also suggest you fax us the first page of the last three business checking account statements. This enables us to get an average bank balance and speeds up the credit decision process.
How long does the Approval stay open? The credit approval is usually open for 60 to 90 days. After that time we can do a quick re-check and get the re-approval.
How much money is required to start a Lease/Finance Agreement? Normally, we require only one month’s payment and a one-time documentation fee to start a Lease/Finance Agreement. The object is to make it as easy as possible to get the equipment you need.
Are Personal Guarantees required of the Owners? Most Lenders including banks will require owners of small companies to personally guarantee the Lease/Finance Agreement. When Lenders finance equipment, they are taking the risk that the payments will be made as agreed. In return, they expect the owners to have the same belief in their company and stand behind their company’s commitment. However, there are many occasions when no personal guarantees are required. This decision is based on the strength of the company, time in business, number of owners, etc.
What costs may be included in the total amount to be financed? Key Credit’s philosophy has always been to make it as easy as possible to get the equipment you need while laying out the least amount of money to get the Lease/Financing started. Therefore, we can arrange for almost all front-end costs to be included in the Agreement. These costs may include shipping, installation, training, sales tax, etc.
What other fees are required to start the Lease/Finance Agreement? There is usually a one-time documentation fee.
What does a Net Lease mean? The Customer is responsible for all state/local sales taxes and property taxes levied by their government.
Why is a telephone call needed to authorize the start of the Agreement? This is always the last step before the Lease/Finance Agreement begins and the Equipment Vendor is paid. This step is done for everyone’s protection. The Customer will get a telephone call to review the terms of the Agreement, confirm the mailing address for the monthly invoices, and asked if they have received the equipment and will authorize the release of the money to the Equipment Vendor. As a convenience, we always include a “Verbal Authorization” form with our Agreements. This form enables you to authorize another individual in your company to take the call from our administrator to start the Agreement and release funds.
What Purchase Options are available? On Equipment Finance Agreements the customer owns the equipment so no purchase option is needed. For leases, the most frequently chosen purchase option is $1.00 at the end of the term. We also offer a 10% of equipment cost purchase option and a negotiated Fair Market Value option.
How do I exercise my Purchase Option? We always suggest that when you get your next to last monthly payment invoice, you include a brief note to the Lender stating that you want to exercise your purchase option and include a check for the $1 or 10% of equipment cost. If you have a Fair Market Value purchase option, you need to contact Key Credit or the Lender to begin the negotiation process. Key Credit will also try to contact you about 60 days before the end of the Agreement term to remind you of purchase option procedures.
KNOWLEDGE + SERVICE = SUCCESS
Key Credit Corp. is a metropolitan Atlanta, GA company
555 Sun Valley Dr., N1, Roswell, GA 30076
800-344-9922, fax 800-261-7826