First National Capital,
Inc. finances each piece of equipment under a finance
lease/purchase agreement. There are several excellent
reasons to finance your equipment
RETENTION OF WORKING CAPITAL: The
rising cost of products, and hence, the cost of financing
inventory and receivables has increased a company’s
dependence on their first source of financing (the
bank). First National Capital, Inc. is an excellent
alternative to using a portion of the total credit
exposure a bank is willing to extend.
INITIAL OUTLAY OF FUNDS: When
financing equipment, several financial institutions
require a down payment of 10% to 20%. A $100,000 piece
of equipment would require an initial outlay of $10,000
to $20,000 plus (where applicable) state sales tax
on $100,000. Generally, the initial outlay for this
same $100,000 piece of equipment under our agreement
is $2,000 to $4,000. Also, our customer does not have
to pay the sales tax at inception. Instead, the sales
tax can be added to each monthly payment.
LENGTH OF FINANCING: Most financial
institutions prefer financing on specialty types of
equipment for three or four years. A preferred customer
may obtain five year financing. FNC is able to offer
seven year financing.
OPTION TO PURCHASE: Our agreement
contains the option to purchase at the end of the
term. The purchase price is normally as little as
$1. If our customer wishes to reduce the monthly payment
during the term of the agreement, they can increase
the purchase option price up to 25% of the original
NO DOCUMENTATION FEES: There
are no documentation fees associated in preparation
of our documentation.
ACH DEBIT OPTION: Rather than
writing a check each month, your monthly payment can
be electronically transferred from your checking account.
OPTION FOR DIRECT WRITE-OFF FOR
TAX PURPOSES: Rather than having to depreciate
the piece of equipment under three different depreciation
methods as required by Internal Revenue Service, our
agreement offers an option of directly reducing taxable
income as the monthly payments are made.