DON COOLBAUGH: Credit and collateral issues vary widely, especially in the recessionary atmosphere of tightened lending and borrower scrutiny.
QUESTION: How do you qualify to finance or lease commercial equipment with nothing down?
ANSWER: This is a credit and collateral question and does vary greatly.
If YOU asked what the typical down payment would be for Advantage Funding, I would say 10% on most commercial equipment in the current Limo/livery marketplace. Some credits will be required to put down more, some less with the possibility of 100% financing for AAA customers. 0% down comes with many responsibilities most of which is the knowledge that you will use the equipment throughout and to loan termination.
The equipment will be upside down for most of the term and you would have a difficult time getting out of it early unless you are willing to pay for the mis-equity on the vehicle, sometimes close to $10,000. Therefore only the most secure and stable credits and companies would qualify.
Expert Don Coolbaugh, vice president of sales, Advantage Funding Inc., writes a weekly series of questions and answers for chauffeured transportation operators on all matters related to financing and leasing fleet vehicles. E-mail finance and leasing questions to: Martin@LCTmag.com