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Anyone know of a good finance companies for us?


TKK

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My credit isnt that good right now kinda saturated but its about 680 or so. Anyone have a good source for machine financing? They recomended firestone and quickspark? I do have about 100k in total line of credits plus anout 40k of credit card lines i can use but i dont wanna touch those!

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5 hours ago, allen watson said:

Great question. I used Firestone to get started and somehow it all worked out. 

Does anyone know where i would go to buy a brand new Bevmax 6 media?

Don't get the media version, get the Bev 4. The medias still have too many bugs. 

As for financing, your best rate will always be your own bank, otherwise, look at what the manufacturers have. 

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6 hours ago, allen watson said:

Thanks lacanteen. I didn’t know I could buy directly from DN 

I have purchased 6 new machines from Crane (DixieNarco) now using their in house financing.  Very good to deal with.  My sales rep is on the east coast (Miami) but if you need a contact other than the web site I can pass on his info to you.

Personally, I would avoid USI/Wittern financing as too expensive.  They use "add-on" interest, which is a legit accounting method, but more expensive than simple interest. 

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50 minutes ago, TKK said:

Whats the add on interest? I got 5% with federal and no down, as well as 3 months no.payments

Add on interest is when you pay interest on the entire amount for the entire term of the loan. So you are paying interest on money already paid back.

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6 hours ago, TKK said:

Whats the add on interest? I got 5% with federal and no down, as well as 3 months no.payments

Add-on interest is a sales tool for two reasons. 1: It sounds cheaper than it is. 2: It's easy to calculate for a sales quote. 

Example: You will borrow $10,000 for 36 months at 5% add-on (per year). 

The calculation: $10,000 X 15% (15% is 5% for 3 years) = $11,500 total payments.  $11,500/36 months = $319.44 per month. Sounds good? The actual APR is 9.4%

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I financed hundreds of thousands of dollars selling A/P equipment in the 80's & 90's at 8% add-on/ 36 months.

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Add on interest (rule of 78s) means you will never pay less than full interest.  If you choose to pay the note off early you will still pay all the interest.  To compound that the interest is front-loaded so while your last payment is virtually principal only, even if you pay the note off for the on day 2 you will still pay all the interest.  It is not amortized.

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So it doesnt matter if you pay it off first? Im confused on that because they want us to pay down more on it? Heres what they put

 

IThe approximate APR equivalent is 15.71. The 5% add on is approximate APR equivalent of 9%APR  which is what we talked about and agreed to. 

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Multiply the add-on interest rate times the number of years.  That's your annual rate (ie. 5% for 2 years is 10%).  Now multiply the annual rate and the loan amount (ie. 10% times $25,000 = $2,500).  That's annual interest.  Now divide it by 12 to see what is added to the principal (about $208).  That's how much interest you pay every month that you carry a balance.  That's add-on interest. 

If they are making you pay more interest upfront, regardless of what kind of interest it is, it's to maximize the interest you'll pay even if you pay it off early.  It could be add-on interest or something else.  I have no idea, but the point is that you'll end up paying most of the interest if you carry the balance for more than a year.

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Yeqh the first loan ibe paid down 80k loan was for 180k minus 10k down and my payoff is like 160! And the second loan ive had 3 months and it was for 220k :( guess ima pay this crap off probably paying like 2k a month in interest

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1 hour ago, TKK said:

Yeqh the first loan ibe paid down 80k loan was for 180k minus 10k down and my payoff is like 160! And the second loan ive had 3 months and it was for 220k :( guess ima pay this crap off probably paying like 2k a month in interest

Maybe, but it doesn't matter if your net profit far exceeds all of your combined costs.  That's literally the concept of having to spend money to make money.  The beauty (and risk) of using someone else's money is that you can get much further ahead that way than you could without any kind of loans.

I'm curious though.  How did you get such a large loan?  Do you have high income on your tax returns or did they just loan money without looking too much into your finances?

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