NO DOWN PAYMENT REQUIREMENT: Key Credit’s Lease/Financing arrangements allow the Customer to finance 100% of the cost of the equipment and usually only require one monthly payment to begin the Agreement. This is not always the case with bank financing where often a sizable Down Payment of 10% or 20% of the equipment cost is required. Down Payments use up precious working capital that is needed to support daily cashflow.
SIMPLICITY and SPEED: Key Credit usually only requires a simple Credit Application to arrange financing up to $150,000 and decisions are typically within hours. Banks may require complete financial statements and tax returns and their decisions may take weeks.
SOURCES of FUNDS: Key Credit represents another source of funds, which preserves your company’s lines of credit. Banks generally establish a maximum borrowing limit for each Customer. It is a good idea to reserve a significant portion of this borrowing limit for short-term working capital needs or for an unexpected event.
SOFT COSTS: These costs include shipping, training, installation and other expenses associated with equipment acquisitions. Key Credit enables our Customers to include these costs in our Lease/Financing arrangements. Banks generally will not finance soft costs.
COMPENSATING BALANCES: Banks may require borrowing Customers to maintain a balance in their business checking account that may equal the size of the loan for the equipment. Your company is tying up cash it may need to support daily operations. Key Credit does not require compensating balances.
FLOATING vs. FIXED RATES: Bank financing may use a floating rate that may increase over the term of Agreement and end up costing more than the fixed rate Agreements used by Key Credit.
RESTRICTIVE COVENANT: Banks may require you to periodically submit financial statements to see how your business is doing. The borrowing arrangement may include a call provision that enables the bank to make you pay off the loan if they feel your business is not doing as well as they think it should. Key Credit’s Agreements do not contain restrictive covenants.
BLANKET LIEN: Banks often file a Blanket Lien when doing financing for their Customers. This enables the bank to place a lien on all company assets. This lien is filed as a Public Record. Lease/Financing companies usually only file a UCC-1 financing statement that simply identifies the specific equipment being financed and is the property of the Lender until the end of the Lease and the Purchase Option is exercised. Then a UCC-3 statement is filed which releases the Lender’s ownership rights to the Customer.
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