3 year lease (to own) term on Red One and related equipment

[Lhet]

I have been discussing with a fund manager funding 3 year lease deals for a whole bunch of credit-worthy would-be Red One buyers. If you are a "number holder" (or about to order one) and you would like to know how the deal will work, send me an email. !!Note you will need to supply trade credit references, submit to a credit check, etc.!! The idea is that for credit-approved buyers, the financier will fund the purchase (less a down payment) of the equipment (camera, lenses, battery packs, etc.). You as the lessee will pay monthly, with a small buyout of the lease at the end of the term (maybe $1, maybe $1,000, depending on the financier's comfort level with the product). We will likely start small, so send me your contact info, how much equipment you are looking to finance with your purchase soon (and your reservation number) as the financing capacity will be limited to start, and we will work of the list of inquiries as a waiting list should we move forward (the next step would be that I send you a credit application, and you must qualify to hold a place in line).
Also note that certain accessories may not be eligible (e.g. Batteries)...
Thanks for any comments!
P.S. As for implied interest rate, nothing has been decided yet, but think mid-teens, mol, depending on credit (manufacturers with margin in the product obviously can afford to do "prime-less" deals, but pls remember this is a third-party financing source)

[Ken Corben]

Great service for those that need it - what's the APR? Prime plus 1 or 2 points or 23%? Make sure to read the fine print gentleman - a lot of predatory lenders out there.

Also, verify this "funding manager's" loan broker's license (if required) in the state this offer is made under and check BBB and other sources for due diligence information before you submit any personal information such as SS# etc.

One thing for certain, Panasonic and Sony will be announcing excellent lease and finance programs shortly - maybe subprime and as low as 3-5% depending on number of months :-)

[Ernesto Lomeli]

I my self am leasing through a company that specializes in Film and audio gear.
I highly recommend them as they have down loans for a few good friends of mine. and are now just doing one for me. The rates arnt so bad, pretty standard stuff.

heres his info
David Smith at Plains Capital Leasing

DavidS@plainscapital.com

shoot him an email, he's a good guy
and understands the industry real well.

/.ernesto

[Lhet]

Hey thanks for the post- I edited my original post with the most complete answer I can give at this time (honest!). The money manager is interested in sponsoring this program in the mid-teens, and knows there should be some type of preferential rate for better credit profiles. I am lobbying for an attractive rate, as I know "the competition" will be credit card debt, home equity lines of credit, etc if the rate gets into the nosebleed (23%) territory you mentioned... Thanks

[Lhet]

Please do NOT email me any sensitive info- (e.g. SS#'s). I will not ask for anything like it (i.e. circulating a lease application) untill I am fully prepared to underwrite leases. All I am looking for is indications of interest for further info... Thanks

[Greenlight]

I will be leasing and have found a great guy. Simple and easy.

Art Portugal at S.C. Equipment Funding

ArtP@SCEquipmentFunding.com
(714) 996-1298 ext.201

Hope it helps.

[Russ McDonald]

Caution......Caution........Caution

With the amount of cameras that are going to be on the street, over the terms of your 3 year lease. There is going to be allot of competition. Your profit margin is going to shrink. But your lease overhead isn't.

So plan for that when you structure your lease. Do whatever you can to drive that payment down. Buying the accessories out right would a good place to start.

Try to stay grounded when your in that ether, that lease guy is going to tell you can have it all today, just sign here. You can rent all the stuff you need to complete your shooting package on a per job basis.

[Craig Meadows]

Keep in mind that many equipment finance companies don't always like stating a definite interest rate as a percentage. Always run the numbers yourself through a amortization program to see what your rate really is. It might suprise you. I have used a handful of the companies over 20 years with only one real bad experience.

It's very important to know and have in writing (in the contract or as an adendum) what the end-of-lease terms are. Usually it's one of these four: 1. One dollar buy-out 2. 10% of original costs buy-out 3. Current market value buy out. 4. Walk away and hand the gear back. Each one has it's own merit based on need and value. And each one affects your monthly amount.

If you are established and have a solid relationship with your bank you will almost always get a better rate and terms there. The finance companies that specialize in our industry usually know the equipment better but your banker hopefully knows you and your business better.

When starting out I had to rely more on the finance companies and pay a bit more in interest until I built up enough credit and was able to prove to the bank that we were established and a good risk.

Also check with your accountant to see what tax advantages leasing or buying might have over each other, particularly in terms of depreciation.

Don't forget about insurance. The lender will require coverage. The finance companies offer insurance wrapped in to the monthly payment. But, check with your own insurance agent first as they are usually a bit cheaper.

Lastly, if you are young or a start up the finance companies will almost always require a personal guarantee. That is if you are financing under your company name you will be personally responsible for payment if the company can not pay.