Interim Rent

Associated Capital seeks to provide business owners with accurate information that streamlines business decisions and saves money. Interim rent is a common method that allows a lender to profit by an additional partial payment. In nearly all circumstances, interim rent is 100% unnecessary, pure profit to the bank, pure loss to the client. Interim rent, automatic extension, and prepay penalties significantly affect the total cost and skew direct payment comparison.

Further Explanation:
For this example, let's assume a $50,000 purchase with payment of $1500 per month over a 36 month term. The vendor has delivered the equipment and the contract funds on the 10th of the month. If the contract included a clause for interim rent, the business owner will most likely be billed a pro-rated 1st month's rent for the days remaining in the month, approximately $1016 or 21 days in this case.

The problem is that the actual 36 month term generally does not start until the 1st of the coming month. The interim or partial payment is 100% pure loss to the client or business owner as the term becomes 36 months plus the interim period. $1000 in financing charges, the pro-rated interim payment has been added to the term in this case. We advise you to be aware of the above when comparing payments and companies. The conclusion is to choose a finance partner on resonance and trust, not on the perception of s lightly better payment. Ask your partners about these techniques and always seek to avoid them.

AC's Commitment:
Associated Capital's contracts generally do not contain the interim rent clause or any other clause that undermines the trust of our clients. We partner with lenders who understand our vision and client-centric philosophy. In rare cases, one of our lenders will require its use. Our business is about openness, honesty, and true partnership. In today's business community, what we provide is truly unique within the marketplace. The absence of interim rent is simply another powerful reason why many leading businesses choose to partner with AC.