Asking questions is always important,,, getting direct answers to those questions is even more important. Unless you have been around the block when it comes to financing equipment.

it’s difficult to know which questions to ask especially if you never financed equipment before.

Here is a list of good questions ask?

Please send me my terms in writing,, well that’s not a question more of statement-lol!

What are the fees associated with this transaction?

Make sure they break down the total amount for you. With any commercial equipment financing transaction a customer will be charged fees. There are different types of fees that are charged. One thing to note, the amount of fees charged upfront has nothing to do with the interest rate associated with the transaction. Believe it or not, some financing companies try to pass off a $2500 doc fee as a way to “buy down” the interest rate,,,,A $2500 fee for one piece of equipment is ridiculously absurd and that financing company is definitely “padding” the lien holder’s fee to make more profit.

1. Admin fee or Doc fee
2. UCC filing fee (if not a titled unit)
3. Title Agency fee (if its title equipment and the vendor is doing the title work)
4. GPS Unit fee (some lenders require a GPS unit to be installed in title equipment, some lenders charge the customer for this, some don’t)
5. Wire fee (some charge for this) Prefunding fee (some will charge, some will not)

What type of contract am I signing?

Can I get a copy of the contract to read over?

Is there a pre-payment penalty?

Can I payoff early and receive a discount?