The overview below addresses many major elements and common questions of financing and leasing. Please email or call us if you have any specific questions not addressed here.

Top Level:

• What Do I Need to Know?
• Why Work with Associated Capital?
• Why Not Work With My Bank?
• What Exactly Does AC Offer?
• Why the Focus on Philosophy?
• What Exactly Is AC's Philosophy?
  

Financing Benefits:

• What's the Bottom Line Benefit?
• How Does Financing Benefit My Business?
• How Does Financing Compare to Cash Purchase?
• What Are The Tax Incentives?
  

How Financing Works:

• What's the Basic Process?
• I Have Questions. When Can We Talk?
• How Long Does The Process Take?
• What's the Approval Process?
• How Much Can I Apply For & What Purchases Qualify?
• Can I Finance Software or Soft Costs?
• What Are Your Terms, Rates, & Payments?
• Does Financing Appear on My Credit?
  

Types of Financing:

• Are All Leases Generally The Same?
• Capital vs. Operating Leases?
• Do You Offer SBA loans, Real Estate, or Other Types of Loans?
• Can I Finance Equipment That I Recently Purchased?
  

Winning at Finance - Insider Understanding - Avoiding The Pitfalls:

• The Power of Instinct
• You Are Approved!" Mailings
• Simultaneous Calls from Different Lenders
• FMV Without The Option To Return
• Early Buyout Misrepresentation
• Selling Your Contract To Another Bank
• The Money Makers - Interim Rent, Evergreen / Automatic Extension, Prepay Penalties

Top Level:
What Do I Need to Know?
Financing or leasing is a proven, fast and effective way to purchase equipment and software. A large percentage of businesses use financing rather than pay cash for technology or purchases due to the speed, tax advantages, and overall benefits. Call us to determine the best programs for your enterprise. AC encourages all buyers to focus on the power of relationships over minor price variation; there are many tricks of the trade - avoid them with a credible, transparent finance partner. AC's clients save money, enjoy more fluid and easy transactions, and achieve high levels of success.

Why Work with Associated Capital?
AC focuses on you, the individual, business owner, and executive. Your success becomes our success. We know each other by first name, not by lease number. AC's clients enjoy a higher level of satisfaction than generally achieved through traditional finance channels. AC is known for excellent numbers, 100% transparent contracts, and sound advice. By focusing on the individual, building 1 to 1 relationships, and providing great service and broad capabilities, we 1) secure the interests of our clients and help their businesses grow with low-cost capital and 2) empower a new framework of ideas on business practice that forms the essence of our larger vision. Please take a look at our Testimonials and call us to discuss your business's vision and growth.

Why Not Work With My Bank?
Our Executive Team argues that the ONE key to success in financing transactions is the level of relationship that you hold with the lender, finance company, or individuals involved. We have unequivocally found that in most areas of finance, personal knowledge and professional advice at the individual level has a great impact on the level of satisfaction enjoyed by the client and business owner. If you have a close relation with your local banker, look at the pros and cons, compare numbers between both your bank and a company such as AC. We have found that trust, transparency, and ethics between individuals leads to better pricing and fewer headaches. Wherever you shop for financing, look beyond the numbers - focus on the relationship, where you feel the most trust, confidence.

What Exactly Does AC Offer?
AC offers Education and Information to business owners on how to obtain clean contracts, how to save money, and how to succeed at financing. AC, our clients and partners are building a network of professional enterprises focused on sustainable growth, intentioned business, and mutual support. AC offers financing and leasing for most types of business purchases, working capital loans, accounts receivable financing, and other programs. Big banks often hold the cards in finance - It's time for business owners to hold access to the same information as their bankers. This educational system is a constant work in progress; we're opening up the flow. With fast and transparent app-only funding to $250,000 we support all types of businesses nationwide.

Why the Focus on Philosophy?
For most of the 20th century, many businesses grew by cut-throat policies, shrewd wisdom, and certainly a few ethical transgressions. We observe that: 1) Small businesses have often been without powerful advocates within the lending community and 2) The process by which companies grow is becoming increasingly important - not just the end results that are achieved. We argue that business and philosophy are one and the same: How you build your company IS your company. Services, goods, products, the how and process are all part of a company's makeup. AC's mission to support a transition within banking and finance rests upon a clear understanding of who we are and what we stand for on a fundamental level.

What Exactly Is AC's Philosophy?
AC is an integrator of ideas, approaches, people, and practices. We do believe that the path one walks to build a business is important. We are staunch advocates of business independence, free-markets, civil liberties, and the freedom of individuals to live as they choose. Simultaneously, we observe that tolerance, compassion, kindness, and wisdom are central points of a healthy society; similarly, we hold that bigotry, hatred, pettiness, corruption, cronyism, and fear are symptoms of an un-well society. We believe that business owners and societal leaders have a profound obligation to lead by example - to build, to set precedent, to act and be as we want all of society to reflect. AC strives to operate from this place of clarity in action, support of universally accepted principles, and fearless devotion to bringing power and education to business decision makers.

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Financing Benefits:
What's the Bottom Line Benefit?
Financing allows you to use your cash to grow your business. Small and large businesses recognize this simple concept: If you can invest your existing cash in areas that provide a higher return than the cost of borrowing capital, it is fiscally wise for you to finance your equipment and software purchases.

How Does Financing Benefit My Business?
Businesses nationwide use finance financing for a variety of reasons. Financing allows you to purchase equipment that increases the value or productivity of your business without significant capital outlay. Use your cash position to pay additional salaries, invest in marketing, PR, advertising, or similar. Financing gives you fixed payments and great flexibility in upgrading equipment. Financing enables you to enjoy the benefit of inflation as future payments become cheaper in today's dollars. With FMV financing, avoid equipment obsolescence. Substantial tax incentives exist for most structures.

How Does Financing Compare to Cash Purchase?
Cash purchase is best when you hold a large cash position and do not wish to hold any debt. Cash purchase is effective if you desire immediate, unrestricted ownership. There is not a strong financial argument for cash purchase when a business can capitalize on the benefits of financing. Cash purchase does not enable the benefit of inflation, wherein future dollars and payments become cheaper. Financed equipment ideally generates revenues and pays for itself during its useful life.

What Are The Tax Incentives?
Tax incentives vary by state and county; always confirm and discuss this element with your accountant. Different leases are handled differently from the tax perspective. Capital leases ($1, 10% residual) are generally treated as a conditional sale. Section 179 enables you to write-off up to $250,000 in the current calendar year. See our tax flyer enclosed. Operating lease payments are expensed on a monthly basis.

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How Financing Works:
What's the Basic Process?
Call us to discuss your purchase or questions. Apply online or via our one page application. Most businesses will be approved app-only to a set maximum amount, ranging from $50-500k. We will contact you to discuss various terms and options. We will email you lease paperwork for review and signature. We fund A-C credits, startups, and most all types of purchases. After receipt of signed documentation, we release a Purchase Order to your vendor(s), who then make arrangements to deliver. Funding is released to the vendor(s) upon verbal confirmation with you after delivery. No money is released and the contract does not begin until you explicitly give us the go-ahead.

I Have Questions. When Can We Talk?
We are readily available. Ideally, we want to get to know you and talk with you about your business, where you're going, what your needs are. Call us from 9AM-6PM EST or schedule an earlier or later call when most convenient for you. It's very effective for us to take 10-20 minutes to speak at the outset. This is one of the key elements enjoyed by our clients - rapid and consistent response.

How Long Does The Process Take?
Start to finish, most transactions are approved and documented within 24 hours. Average approval time is 2-4 hours. Upon credit review, we may immediately approve and initiate documentation. You can expect a 1 day process in most cases. Larger and more complex transactions may take longer.

What's the Approval Process?
If you are a professional services business (healthcare, financial, legal, architecture, engineering, etc) - you can expect an app only approval for most purchases. Larger businesses in healthcare, biotech, IT, industry, manufacturing, etc will often be approved on the public record and/or release of financials. Apply Online or fax in our 1 page application. We need your business and personal information. If your business holds a number of owners, we may be able to approve without personal information. 1-3 person businesses are generally approved on the basis of the owners' personal credit information. We may request the summary page of 2 recent bank statements to demonstrate your cash flow. If you hold a 650 or better Fair, Isaac score, you will most likely be quickly approved. If you have high exposure or weaker credit, not to worry - we can often provide you with exceptional rates with release of financials and explanation of past credit issues. AC focuses on A and B credit funding, 625-800 credit score. We do fund C credit applicants and startup transactions.

How Much Can I Apply For & What Purchases Qualify?
AC funds purchases ranging from $5000 to $100,000,000. Our average transaction is $100k. We fund most types of hardware and software purchases. In equipment, we're looking for in-practice / in-business hard-asset purchases. We fund hundreds of software vendors. Nearly all types of purchases qualify.

Can I Finance Software or Soft Costs?
Yes. Most business software is fine. In many cases, we can provide soft capital to help with your project. We provide working capital to $250,000 through our network.

What Are Your Terms, Rates, & Payments?
Finance terms are typically 2-7 years with most customers choosing 5 year structures. Working capital and real estate loans may be longer. See below for definition of lease structures. Rates vary by lease structure. It's not easy to exactly compare payments and rate in finance transactions unless you know a variety of variables. You need to know the number of advance payments, the exact term, the exact residual option, and the potential fee structures involved. AC provides among the lowest rates in the US. Payments vary by transaction and term. Request a quote online for exact numbers.

Does Financing Appear on My Credit?
For most types of financing, AC and its partners are not required by law to provide information to the 3 credit bureaus on financed purchases or debt. This is one of the central benefits of financing and leasing. Business owners are able to keep business purchases off their credit, thereby helping to keep their personal credit score high. As with most types of financing, we do need to review credit in many cases, which will show as an inquiry on one's credit report. This does not usually affect credit scoring unless an individual accrues a significant number of inquiries in a short time.

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Types of Financing:
Are All Leases Generally The Same?
Who writes these questions! Joking aside (we've heard this too many times), there are very important differences in types of contracts. Accounting - Different contracts will be expensed and accounted for in different ways; this is one of the keys. Total Cost - Some contracts will have an open-ended structure that may cost you an arm/leg for ownership; the presence of specific profit devices can cost you thousands in fees. Transparency - Lenders have different policies - focus on building a sound relationship - you'll invariably have a better experience. Flexibility - Often, the larger the lender the more inflexible their contracts will be. Again, local, more accountability is often better.

Capital vs. Operating Leases?
Capital leasing ($1, 10%, fixed residual contracts) is chosen by most small businesses for a variety of reasons: 1) Implied transfer of ownership 2) Tax deductions, depreciation 3) Control over the transaction 4) Known total cost 5) It's the most defined, generally least risky structure. Operating lease structures (Fair Market Value) may be best when a business: 1) Does not want ownership of the equipment 2) Wants to expense the payment monthly 3) Buys rapidly depreciating technology 4) Has exhausted capital budgets and needs an operating structure. Operating leases require greater management and can often be more costly than capital lease payout due to automatic renewal. Call us to discuss.

Do You Offer SBA loans, Real Estate, or Other Types of Loans?
AC offers a variety of loans and finance structures in addition to equipment and software finance. We do work with clients to obtain small business loans under the SBA structure. We offer practice refinance, practice acquisition loans, and business sale or purchase financing. We maintain a network of highly qualified partners in a variety of fields, including real estate and commercial underwriting.

Can I Finance Equipment That I Recently Purchased?
Yes. If you have recently purchased equipment and would like to finance that equipment, call us to discuss. Purchases must be made within the past 12 months. Some restrictions apply.

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Winning at Finance - Insider Understanding - Avoiding The Pitfalls:
The Power of Instinct
AC recognizes that many of our clients will be comparing numbers across sources. Ours is a way of breaking with convention: We remind all business owners to evaluate finance contracts as a whole and to focus on credibility and partnership. Remember that it is exceedingly simple to distort the true cost of a contract - true comparison requires specific information and an understanding as to what risks and/or devices are contained within that agreement. Your consistent best bet in funding is to partner with a company which can provide a level of accountability and trust. Combined with knowledge, gut instinct goes a long way. Trust your intuition - do business with partners or referrals over large lenders when possible.

"You Are Approved!" Mailings
Finance companies are borrowing this one from the credit card companies. When you get a "You Are Approved" letter in the mail, remember the fine print - They will ask for an app and your authorization. Rarely if ever is any business approved until they are Actually Credit Approved. Indeed, larger businesses may be approved on the public record. For small businesses, approval requires review of personal credit - It is not legal to pull credit without your permission. Even if the notification is from an existing business partner, our company included, all credit approvals have an expiration date - usually 90 days out. AC will provide clients with a line of credit to our maximum app-only approval, as will most companies. Do not be fooled by innovative mailings. No lender 'automatically' approves. Those that present misleading marketing are likely to play other games.

Simultaneous Calls from Different Lenders
Have you ever received a call from a competing lender just when you were in the process of closing a transaction? This may seem like a great thing - compare the numbers - get a better deal. The problem is that 90% of the time, that was not a random call and the caller's intentions are rarely as pure as you'd think. The call came from a company that employed a highly unethical tactic of paying a credit bureau or other entity for access to your information just after it's reviewed by your current partner - they purchase the lead and undermine your existing partners. Companies that employ this tactic are often known for other unethical practices. Don't be deceived - if you get such a call and they cannot tell you how and why they got your name - it's what's called a 'Trigger Lead,' they bought your name and generally will not save you money. Profit is the name of this game.

FMV Without The Option To Return
Clients that purchase FMV contracts generally believe that they have the ability to return the equipment to the lender at the end of the term, 3-5 years out. Don't assume this is the case. Many FMV contracts do not actually give you this option - they instead only give you the option to renew the lease for additional payments or to purchase the technology for the then fair market value. If you intend to return the equipment, make sure that you actually have this option. This is critical - with FMV contracts you will want to verify in writing exactly what are your end-of-term options.

Early Buyout Misrepresentation
Many clients in financing transactions seek the option to buyout or terminate a contract early. Financing is not generally the same as a standard bank loan, wherein you may obtain a simple interest buyout. With financing and leasing, there are a few types of buyouts. A few select lenders from time to time may provide a principal-only or simple-interest buyout, rare today. The next best practice is a discounted buyout whereby the lender discounts a percentage of the outstanding interest. This is what AC generally provides. Next, many lenders will not discount the outstanding payout; you will be obligated to pay the full payment stream plus any residual. Lastly, many lenders will charge a fee for early buyout on top of the entire payout. Clearly, business owners should seek disclosure here - Don't accept the 'No Penalty' answer - Get clarification when speaking with your partners. Often contracts that are terminated in the first year will not be discounted.

Selling Your Contract To Another Bank
AC and partners work to maintain control over the paper we provide and underwrite. One of the classic criticisms of larger lenders is that the paper may be sold early on to a variety of institutional investors: hedge funds, insurance funds, larger banks, or overseas firms. Clients will typically experience less flexibility and reduced ability to solve customer service issues with large lenders. We have found that the smaller, more local lenders will generally hold the paper in more circumstances. Big finance companies are often no more reliable here than large banks. Ask your sales reps about their firm's policies herein.

The Money Makers - Interim Rent, Evergreen / Automatic Extension, Prepay Penalties
AC encourages all business owners and decision makers to review our information on the major profit devices that appear in the documents of many lenders. See the top sections of our Knowledge and Tools Section for detailed explanation on how to save money and avoid headache herein. Knowing the basics of interim rent, evergreen clauses / automatic extension, prepayment penalties, and duplicate insurance billing will likely save you hundreds to thousands of dollars on your next finance transaction.

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