Lake Union Financial



Lake Union Financing vs. Bank Loan

Sales tax payable over term of contract. Sales tax due up front.
Conserves valuable working capital. Short term money is not used for long term purpose.
Conserves Cash - 100 percent financing
(No down payment)
20-30 percent down payment.
Fixed rate for life of contract agreement. Floating interest rate.
Keeps credit lines open. Uses credit lines that could be utilized for operations.
Transfers risk of equipment obsolescence to lender. 100 percent obsolescence risk.
Can save you money. May be more expensive than leasing.
Eliminates risk of Alternative Minimum Tax. Potential liability to Alternative Minimum Tax.
Recorded off the company's balance sheet. Booked on balance sheet.
Can be structured to creatively fit your individual needs. Inflexible.
Provides a quick and simple financing transaction. Normally requires more time and paperwork to consummate.
Treat as expense and bypass capital budget. Unable to borrow as capital outlay not budgeted.
Saves bank line for growing the business. Uses bank line for depreciable assets.
Longer Terms. (60 - 72 months) Term of loan is short. (12 - 36 months)
Expense lease payments. Requires depreciating assets.
Asset can be upgraded earlier. Asset is harder to dispose of.
Payments may be 100 percent tax deductible.  
Pay with before-tax dollars.  
Finance soft costs: freight, warranties, installation, etc.  

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