For most KMC customers, financing means a substantial investment relative to daily expenses.
We suggest you call 2 or 3 companies before you decide on a finance partner.
Following are questions you can ask that help cover the basics, while you assess compatibility.
Questions About Their Service to You (questions about their business below that):
I’m calling about financing a $27,000 wizbang – does your company help with that?
Assuming they do, read on …
Can you tell me what options are available – or …
How much are payments for 36 and 60 months? –
It’s reasonable to be told that your credit will need to be seen – but we can usually give a solid
estimate after asking a few questions about your credit, and time in business.
If we decide on this option, how do we get started?
We’ll send our one-page application form (it’s usually all we need for approval) – for most
we’ll have an approval that day or the next day.
What happens after we get the approval?
We get the invoice from your chosen vendor, prepare documents
(sent with return UPS envelope if we can’t get together for signing).
When does the vendor get paid?
Up to 100% can be paid in advance, but most often, payment is made after delivery to you –
and after a phone call for a final review of the terms, and confirmation that you’re happy with the equipment.
Questions to Ask About Their Business:
How long have you been in the business?
We think 3+ years should do it, but newcomers might deserve a chance.
How many lenders do you represent?
We think 4-7 is a good range to help place 95% of deals based on credit worthiness – many say
“30 different lenders”, but if that’s true they probably don’t know any of them very well.
Do you arrange financing for this product?
Common items should not be a problem – but our experience with software or
environmental equipment for instance, can be a big help.
Where is your office / What territory do you cover?
Not critical, but some have stronger regional lenders.
What is their average transaction size?
Not critical either – $5k to $500k for KMC, with most $20k to $100k.