TKK Posted November 13, 2018 Share Posted November 13, 2018 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! Link to comment Share on other sites More sharing options...
orsd Posted November 13, 2018 Share Posted November 13, 2018 If you want financing you have to buy new machines and deal with the terrible terms. Honestly your best best is a business line of credit or a business loan. Link to comment Share on other sites More sharing options...
allen watson Posted November 13, 2018 Share Posted November 13, 2018 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? Link to comment Share on other sites More sharing options...
AngryChris Posted November 13, 2018 Share Posted November 13, 2018 3 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? Business must be good! Link to comment Share on other sites More sharing options...
allen watson Posted November 13, 2018 Share Posted November 13, 2018 End of the year write offs Link to comment Share on other sites More sharing options...
orsd Posted November 13, 2018 Share Posted November 13, 2018 God bless section 179. Link to comment Share on other sites More sharing options...
lacanteen Posted November 13, 2018 Share Posted November 13, 2018 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. Link to comment Share on other sites More sharing options...
allen watson Posted November 13, 2018 Share Posted November 13, 2018 Thanks lacanteen. I didn’t know I could buy directly from DN Link to comment Share on other sites More sharing options...
Southeast Treats Posted November 14, 2018 Share Posted November 14, 2018 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. Link to comment Share on other sites More sharing options...
TKK Posted November 14, 2018 Author Share Posted November 14, 2018 Whats the add on interest? I got 5% with federal and no down, as well as 3 months no.payments Link to comment Share on other sites More sharing options...
orsd Posted November 14, 2018 Share Posted November 14, 2018 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. Link to comment Share on other sites More sharing options...
TKK Posted November 14, 2018 Author Share Posted November 14, 2018 They gave me a payment break down and the first months months the payment goes mostly to just interests Link to comment Share on other sites More sharing options...
lacanteen Posted November 14, 2018 Share Posted November 14, 2018 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% I financed hundreds of thousands of dollars selling A/P equipment in the 80's & 90's at 8% add-on/ 36 months. Link to comment Share on other sites More sharing options...
AZVendor Posted November 14, 2018 Share Posted November 14, 2018 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. Link to comment Share on other sites More sharing options...
TKK Posted November 14, 2018 Author Share Posted November 14, 2018 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. Link to comment Share on other sites More sharing options...
TKK Posted November 14, 2018 Author Share Posted November 14, 2018 I asked about the early pay off.. No you would pay interest accrued to the day you pay off... Link to comment Share on other sites More sharing options...
AngryChris Posted November 15, 2018 Share Posted November 15, 2018 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. Link to comment Share on other sites More sharing options...
Snack Man 2000 Posted November 15, 2018 Share Posted November 15, 2018 Wittern will finance new and used machines Link to comment Share on other sites More sharing options...
TKK Posted November 15, 2018 Author Share Posted November 15, 2018 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 Link to comment Share on other sites More sharing options...
AngryChris Posted November 15, 2018 Share Posted November 15, 2018 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? Link to comment Share on other sites More sharing options...
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