looking to try out site sponsor for financing. questions from users

i am familiar with using my local banks...and using cat financial. but i dont want to use my local bank anymore because in our town....they are anti-equipment which is mainly due to the builders in our area losing everything(due to poor economy). as we all know...builders have alot of equipment themselves just as we do.

and cat financial..is easy as pie to use when my salesman just shows me the interest rate.,,and details...and tells me to sign.

so i have found a few dump trucks i am looking at (i slung a rod through the block on the . and i plan on upgrading some of our equipment over the next year.


i am in business with my father. (he started around 1964 and i have worked with him all my life and i am now 32). as he is getting older...and more unhealthy...i am now going to have to start picking up the pieces. as far as showing a tax statement goes....most of the income goes through his name. and my income is basically myself paying out of the business to myself...and then to my personal bills. either way...taxes are paid...but if my finance company needs to see my tax statement...do i give them my personal statement? or the business/father's? if they ask my income..do i say my personal income...or the business altogether?

ok...so i have thought about using the sponsor on this site to finance with. i briefly looked on the website and glanced at the application. i can see that they are wanting bank account information. does this mean they will see how much money i have in my account? i just dont see how that is anyone's business...or right to inspect. or..do they just want to know i have bank accounts because i have over 4 accounts just in my name.

also..does the site sponsor need tax statement?

i am hoping to buy a dumptruck in the (under) $30,000 range. and i am looking at a cheap truck at this moment...maybe 17000. but i plan on buying a mini excavator and d5g size dozer soon. (need to find small equipment for small jobs because we use d6 size dozers and 320c size excavators). used of course. and i was buying new...i would just use the manufacturer financing.

i am doing 3 things at once....so sorry i am so unorganized on this thread.

thanks for any help.

I have no expierence with them but I know some of the other member's have. From their compliments they seem like a good company to work with. Maybe some of them will chime in with further comment.

Finance Guy is the member who you ought to speak with about some of the more detailed workings of their programs. He is also active here so I'd be looking from a response from him also.

You can contact Finance Guy as Countryboy suggests or click on the banner above to reach their website where you can apply on line. Be sure to mention you're from Heavy Equipment Forums!!

work with your local bank if possible, lot easier to pull up in front of the bank in your town, walk in, tell him times are slow, or gangbusters...gives him a good gauge on working with you. might be a lot easier to explain a downturn in biz and work with a local guy....than somebody 1500 miles away and has to make his daily spreadsheet work out.

Finance Guy

My turn to pay some respect: Finance Guy is reputable, good to work with, and will absolutely respect your privacy. Give him good, honest information and he will help you........good stuff in, good stuff out (like most all we do in life). He worked with me over a four month period until I was ready, and at the last minute (literally) he lost the deal to a last minute lower number. I would give him the opportunity again, and would recommend him highly. He is patient when he needs to be, he returns phone calls, knows his business, and knows heavy equipment. Bottom line: absolutely worth your time!

X :usa

Thank you

First of all, thank you Don. Don was a pleasure to work with. I am happy he got his equipment and things worked out.

Planetshapers - Your questions are very valid. I will try to answer in a way so as to not be confusing.

Bottom line consumer banks do not like equipment at all.
Keep in mind most big banks you see driving down the road have a commercial division you don't know about.

I structure commercial leases for businesses. Now don't get afraid of the word lease... 95% of businesses lease their equipment because of the tax benefits. Research tax rule 179.

A lease finance agreement does not show up on your personal credit bureau!!! So, if you need some money from your bank down the road they do not see that you have what we call "exposure". If you get a equipment loan from your local bank guess what shows up on your bureau??? you guessed it... the loan amount. BAD!!! The bank will also try and put a blanket lien on everything you own to secure the loan, think I'm wrong, look at their fine print.
Why doesn't a lease show up? Well, it is considered a rental and as any rental it would not show up. Go rent a machine from Hertz, that doesn't show up. The difference here is that it is a rental with a purchase opotion at the end. In most cases the purchase option is $1.00.

The finance agreement is structured under your business name but approved by your personal credit. Here is how it works...

Fill out an application with all business owners and submit.
Credit is evaluated, if your credit is ok then we can move forward.
Most times equipment under $75,000 can be done with what we call application only which means you need the application and the past three months bank statements.
Why statements? To get a bank rating. Banks use to rate, now they don't so, we need the past three months. Try financing a piece of real estate for$75,000 with just three bank statements... No gonna happen. Also, if you want a piece of equipment and the payment is $750.00 a month and you only have a average balance of $250.00 per month how do you plan on making this payment. Keep in mind that banks never loan on forecasts only the past. What I mean is you can't get approved for a loan based on a contract that you think you might get next year that has a profit of $100,000. Well, what if the contract falls through??? The bank looks at your previous business to approve you. Now, if you do what Don did and had a awesome business plan put together then that can sway some banks. Great job Don.

Ok, businesses with under two years time in business need to provide some personal financials such as a tax return or two. Why? It's kinda like when you turned 16 and got your license and you had to get insurance, well the insuransce was EXPENSIVE because you have never driven and you need to prove yourself. That's the way lenders look at it with loans. Gotta prove you can run a business and make money and pay your bills. Most businesses fail within the first two years, not because of effort but beacuse of cash flow. If a business is struggling the first finance obligation to default is usually the equipment.

I work with 40 lenders and my my goal is to get you approved for the best deal possible. Bottom line. My main lender is US Bank's commercial division called Manifest. Not everyone qualifies for their program so that's why we utilize 39 other lenders. You have no idea of what I see here as far a credit goes. I see rock solid people and people that are in horrible shape credit wise, it's nice to have an avenue for everyone. Keep in mind I did not create your credit history, you did, but I am happy to work with all types of credit.

Lastly, DO NOT CALL ME AND ASK WHAT THE INTEREST RATE IS!!!! There is NOT a interest rate associated with a lease, period. You get approved and qualify and my underwriter issues a rate factor that determines your monthly payment. Confused? Go lease a small office space at the local strip mall and ask them what the interest rate is and see what reaction you get... Do you ask Hertz what the interest rate is when you rent a Dozer for a month? NO! The difference here is again is my program has you owning the equipment at the end of the term.

The requirements I ask for are fairly simple, even large transaction are easy if the business owner has the information necessary. I am surprised when a contractor contacts me and wants aexcavator for $150,000 and has no idea where to find his bank statements are where his company tax returns are... How do you keep the doors open with this lack of knowledge.

I make things very easy, I even help people set up an LLC or Sole Prop if they don't have a business entity yet.

All the information is for internal use only, the information is not shared with onyone other than the underwriter. It is safe.

dayexco... Sorry for being blunt but what a horrible piece of advice... WOW. I'm confused on what a daily spreadsheet is, never seen one here.
Let's face it, fax me an application, bank statements and I get you approved, I send you the documents FedEx, you send them back FedEx, all on my dime. Go pick up your equipment. Why waste your time at the bank???

And as a final statement. I truly appreciate the opportunity to work with anyone and you will see that in my work ethic and business experience.

Thank you.

Todd
425-732-2972

Finance Guy said:

dayexco... Sorry for being blunt but what a horrible piece of advice... WOW. I'm confused on what a daily spreadsheet is, never seen one here.
Let's face it, fax me an application, bank statements and I get you approved, I send you the documents FedEx, you send them back FedEx, all on my dime. Go pick up your equipment. Why waste your time at the bank???

Click to expand...

well.........because it might affect my overall operating line at my local bank that has been extremely great to work with? that i'm sure it's going to be a lot easier for me to drive down the street, chat with them being they know me personally as a customer for 27 yrs? because it appears to me that you are a mortgage /finance/lease broker? i'm not picking on "you"...by all posts, it seems as though you're very upfront/reputable...i get calls from "fleece companies weekly. i'm sorry, each to their own. i'll run with my local bank when i can.

dayexco, no worries, my wife call's me a handy man. I am pretty handy.
I AM a finance broker. I am a direct lender with Manifest with broker abilities. You need money for equipment I can probably get it for you. I would never ask anyone to cease doing business with their bank. I have many repeat customers with an operating line with their bank and I take care of the equipment financing for them. I respect that you have been successful for that long.

Happy Holidays

I used Finance Guy one year ago when I bought my current used dump truck. He is very professional, and makes what is usually a PITA something that is easy to do. I was in a hurry to get things wrapped up before the end of the year (for tax purposes) and he made it happen. The seller was also very happy working with him.
I usually only buy equipment when I have the money available, so this was a first with me. I wasn't too anxious about going the finance route but thought I would contact this forum sponsor and see how big a pain it would be. It turned out to be rather straight forward.
I would definitely use him again.

Hey Bob,

Bob was another individual that was a pleasure to do business with. Thank you for the good word Bob.
How is the truck working out?
It is near the end of the year... Do you have your eye on any machines I can help you with?

Happy Holidays.

Todd

Hi Todd,
The truck is working out great. Probably the best investment I have made to date.
I am in good shape on my taxes for this year, so no new equipment now. I am planning on an addition/upgrade for next year.
Hope all is going well for you.

Finance Guy i have a few questions/Will post here for others information.

A long time ago,i went through CIT financing company it was a real pain.They didn't understand weather related slow downs ,lets say.

To backup a little I originally got my loan from Cat dealer.Cat dealer had to sell out to new Cat dealer ,but before they did that they sold my loan with them,to CIT.I asked why???? because mine was one of there good loans and they could sell it.

They more or less said thats it in a hand basket.I guess they could have called the loan in and took the machine,but they needed capital not more machines.

This was in the 70's tuff times then.

So the question,can you sell the lease,loan, at any time still now days if needed????

The Cat dealer was good to work around the weather(100 year rain) related problems ,but as soon as CIT took over it was like night and day.On time no matter what.With that said i always paid ahead when ever i had good going and showed on the records from pass business with the Cat dealer.

Of course i had the machine nearly paid for,so it seemed like CIT was more interested in owning my machine then helping me pay for it.

Long story,so needless to say.The prime was like 21% and my loan was 4% above prime .Do the math 25% of what i was making (profit side) went for just interest.Just for you guys that never seen it that high .Please enjoy your rates today,unless it is credit card interest.

Luckly i finally got tired of CIT threating me and talked to my banker and got a loan through them and things all worked out and still doing busniess 32 years later thanks to them.

Thanks for taking the time to read.Just hope your company knows the different of a friendly and a. Face ! Something for other to think about sometimes,just thought i would share.:usa

So the question,can you sell the lease,loan, at any time still now days if needed????

I have not seen that myself within the industry I service. Now let me say if a bank is bought by another the note goes with the sale and there is a possibility that the new bank could review all the notes and sell some of them off... Again, I have not had that happen. Now mortgages get bought and sold all the time...

CAT uses their own money or investor’s money, CAT controls that money so if you need a little help in down times they can work with you because that money is theirs. Keep in mind that if you are using a vendor backed lease/loan you probably paid full tilt retail and got a very low interest loan so they are making a ton of money in that regard. CIT needs that money as they are using others people's money to lend and they need all that revolving money to make interest so they would be less of a help during a down turn.

It sounds like your experience with CIT was not the best and not knowing all the specifics I withhold making any judgments other than to say that from what you are saying you would probably not use them again, so, enough said...

I will throw this out there... If anyone else is experiencing troubles with their bank or whatever finance institution you are using I can re-finance your lease/loan with one of my programs.

I am here for you. I am straight forward and honest and my goal is to get referrals and your repeat business.

Construct'O - Hope I answered your questions. I am glad things worked out for you. And yes, I want all the people I work with to have

PS - Our nation is upon difficult times... Your typical bank is tightening their loan programs during this time; it will be more difficult to get a loan from them ESPECIALLY for equipment as they don't really like that anyhow. I say this because I am on the commercial side and the reports are that the government will be offering huge incentives for businesses to buy equipment and I can help you do that.

Todd

What kind of incentives are you talking??????? that you have heard, that they don't already have.

Faster right offs,larger write off,income credit,no capital gain taxes if be the case.I would like to hear.At my age probably not a big deal for me ,but some of the younger guys might be interested.

Also thanks for the quick reply and the information on my earlier question.:usa

It this point all I have heard is that there will be bigger and better incentives. More than what is in place currently. As soon as I get details I will post for all to read.

Todd