By The Leasing Group

Case Study: Financing in a Hurry

Companies often need financing in a hurry. Sometimes, this leads them to make rash decisions that don’t serve their best interests, and they create unnecessary headaches in the process.

Recently, a commercial distributor approached us with a problem related to leasing a piece of packaging and distribution equipment valued at $350,000. Because they were in a hurry, they had already agreed to enter into an equipment lease with the equipment manufacturer.

The distributor got what appeared to be a quick approval, but they noticed that the terms of the lease changed by the time they received the contract. For starters, the lease payments were higher than what was originally agreed to. In addition, the sales tax was assessed twice, both at the time of the sale and on the lease payments. Complications ensued when the manufacturer’s lease included ambiguous and onerous language that ultimately killed the deal.

Throughout the process, impersonal, ineffective service received from a lease-processing center on the West Coast was a huge roadblock to finalizing the deal.

When the distributor finally threw up their hands and approached The Leasing Group, we secured standard lease financing in just one day. We closed the lease two days later.

Our client was extremely grateful that we were able to take what had been a four-week long quagmire of snag after snag and transform it into three days of success.

If you’d like to learn how we can help you navigate your own complicated leasing waters, call us at (502) 547-2773.