Why should I do business with Cedar Ridge Financial?

We at Cedar Ridge Financial believe the most important thing to you is more sales. Our research shows that the majority of vendors use leasing after the sale. The customer either asks about financing after they make the decision to buy or they are complaining about the equipment cost and question if they can afford it. Leasing is used in both of these scenarios to salvage the sale. Our goal is to help you, the vendor, to generate additional sales. We will share with you techniques that will incorporate leasing into the entire sales process. We will start at the beginning of the sales process, which usually is your advertising. We will teach you how to use financing to attract new customers and leads. We will then share with you closing techniques using leasing. 

Our primary goal is to assist you in generating and closing more sales. If we cannot do that, you do not need our services.

How long does it take to get an approval?

Typically transactions under $75,000 can be approved in 24-48 hours. Larger transactions will require financial disclosure, i.e. financial statements and tax returns, and are generally approved with in 2-3 days after receipt of the financial information we have requested.

When do I get paid?

Upon notification of delivery and installation of your equipment we will issue your check within 48 hours.

Who handles all the paperwork?

We will handle all aspects of the lease. We will take care of all the credit investigation, approvals, and all necessary paperwork. This allows you to concentrate on sales.

What if the customer does not pay and the lease goes bad?

All transactions that are completed are done so on a non-recourse basis. The credit decision was not made by you, therefore, if the customer does not pay, that is our problem, not yours.

Can other things be included in the lease besides the equipment?

Absolutely. Soft cost such as sales tax, delivery, installation, etc., can usually be included in the lease payment.

Is it possible to lease to the Governments?

Yes. We have the capability to lease to Cities, Counties, Townships, Public School Districts and State Governments. This would include Fire Departments, Police Departments, State Universities and more. The equipment would include computer equipment, communications equipment, transportation equipment and more. We can also lease to the Federal Government. This would include customers such as the Armed Forces, Veteran's Administration, and US Postal Service, etc. Leasing to the Federal Government is big business and is on the rise.

 What happens at the end of lease term?

• Return equipment to lessor.

• Purchase equipment from lessor.

• Re-lease equipment from lessor.

How does leasing protect bank borrowing ability?

Leasing will protect credit line facilities so that they may be utilized for other more profitable purposes. Restrictions (compensating balances)

Are leasing terms longer or shorter than bank loans?

Equipment can be leased for considerably longer periods of time than bank loans, affording a much lower monthly outflow of cash.

What types of lease terms are available?

Lease terms are 24 - 60 months. Purchase options include Fair Market Value (FMV), $1 Buyout, and 10% PUT.

How does leasing conserve capital?

Cash remains untouched, leaving it available for more profitable uses or simply in reserve.

Why do I have to give you a check with the signed lease proposal application?

The check is simply applied as your advance lease payments. If the lease should be turned down for any reason, a check will be returned to you immediately.

Do you need financial statements?

Financial statements are not required for most of the lease applications.  Note: Cedar Ridge Financial keeps information in the strictest confidence.

After I submit my request for an equipment lease. How long will it take to be approved?

We can get approvals in as few as 24 - 48 hours.

Do you finance soft cost such as installation & service?

Yes, we provide 100% financing including soft cost.

What is The Difference Between A Lease And A Bank Loan?

 What types of purchase options are available?

There are basically three types of purchase options:

·        FAIR MARKET VALUE: (True Lease) This purchase option is the most commonly used purchase option since it has the most tax advantages and options at the end of the lease. At lease end, the lessee has the option to continue to lease the equipment, return the equipment, or purchase the equipment at its fair market value.

·        10% PURCHASE OPTION: This option establishes a fixed purchase price at the end of the lease. The customer has the option to purchase the equipment for 10% of the original purchase price, continue to lease it, or upgrade the equipment.

·        $1.00 PURCHASE OPTION: This option is for those who want to have a nominal purchase option at the end of the lease term. They simply pay $1.00 plus a small charge for the processing, primarily if any title transfers are required. The lessee is typically treated as the owner of the equipment for tax purposes.

·        As with any financial decision, we suggest you consult your accountant when determining what type lease structure is best for your particular situation.

What Is a Sale-Leaseback?

A sale-lease back is an arrangement whereby the owner of equipment agrees to sell that equipment and immediately lease it back. Prior to the sale-leaseback, this equipment may be subject to a security interest of another party. In that case, the secured lender is usually paid off at the time of the sale.

Can payments be adapted to seasonal cash flow needs?

Yes. Some industries experience predictable irregular cash flows and/or seasonal slowdowns due to weather conditions, market conditions or a variety of other reasons. The impact of weather on the construction industry is just one example. For such businesses, leases may be arrange with payment due at irregular time, such as monthly from April to November only, in conjunction with the productive use of equipment.

What equipment can be leased?

Just about any commercial equipment for use in business, government or non-profit institutions

Does the equipment have to be new?

No.  We provide lease financing for used and/or new equipment--in fact, we can even buy back equipment recently purchased for cash and lease it back to you to free up cash!

What kinds of working capital programs do you have?

Cedar Ridge Financial has three different types of working capital programs to meet a variety of needs. Here is a brief overview of our working capital programs:

Credit based working capital program

• For working capital amounts from $15,000 to $150,000
• Excludes Medical and Dental
• Minimum CBR of 700 and minimum TIB of 3 years - these minimums will increase as the amount requested increases.
• For working capital amounts over $50,000, financial package will be required.
• 36 month to 60 month terms, depending on working capital amount.
• Requires personal guarantees by the owners, blanket lien on the business, and ACH on the payments

Collateralized working capital program

• Program limited to hard collateral with readily re-marketable characteristics including machine tools; construction equipment; titled vehicles.
• Up to 50% of the appraised market value of qualified equipment will be advanced
• $25,000 Minimum transaction
• 5 years TIB required
• Home ownership required
• Proof of ownership, UCC search, Equipment Condition Report, Desktop appraisal, and site inspection will all be required prior to funding.
• Credit application should be submitted for amount estimated to be 50% of fair market appraisal of equipment.

Conventional working capital loan

• Conventional loan that will proceed through a loan closing process
• Minimum loan amount of $50,000
• Will require full financial disclosure on all transactions
• Loan will look something like the following: 7 to 10 year term, prime + 2.75%, no prepayment penalty

 

When you submit a working capital transaction to Cedar Ridge Financial, our team will help you to determine the program with the greatest likelihood for completing the deal. As a result, it is probably more important for you to know that we can handle a variety of working capital requests, rather than focus on specific criteria for a particular transaction.

As always, should you have any questions, please do not hesitate to contact Cedar Ridge Financial at 913-962-1960.

Phone: 913.962.1960
Email:   info@cedarridgefinancial.com
Fax:     913.248.1915