|Paramount Financial is an independent collateral based finance company and we believe that the more our customers and potential customers know about leasing and financing, the better we look. Here are some answers to common questions you should ask when thinking about financing.|
- Will they put things in writing?
If your leasing company gives you a "verbal approval" and is not willing to commit all terms and conditions in writing… Watch Out! It is likely the approval is not real or when it comes time to do the deal some of the terms or conditions will change. Paramount Financial is willing to put all terms and conditions in writing for your review. Paramount Financial will answer all questions you may have regarding the terms and conditions of your lease or loan.
- Does your leasing company charge a fee to qualify for credit?
Some leasing companies require a $200-$300 qualification fee to begin the credit process. This money is "lost" whether you are approved or declined. Paramount Financial will complete the qualifying process for credit without cost to you.
- Does your leasing company charge a $500 documentation fee?
Many leasing companies charge a documentation fee as high as $500. Paramount Financial charges a reasonable documentation fee of $350 to cover the cost of document preparation, UCC filings, express mailings, and administrative costs.
- Does your leasing company charge an acquisition fee?
Almost all leasing companies require lease payments up-front. Some leasing companies, especially brokers, may require an additional payment listed as a "acquisition fee". This acquisition fee is an origination fee for the contract in addition to any application or documentation fees, which may be required. This "acquisition fee" does not decrease your monthly payments, but rather increases your overall costs. The "acquisition fee" is a method of squeezing addition profit from the transaction. Paramount Financial does not charge an "acquisition fee" on any of its lease or finance contracts.
- Does your leasing company charge an early buyout penalty?
Most leasing companies penalize you if you request to get out of the lease early by requiring the lessee to make all the lease payments on the lease without a discount. The lessee could actually owe more than the original cost of the equipment even if all payments were current. At Paramount Financial, you would never owe more than the original cost of the equipment if all your payments were current. Paramount Financial calculates the early payoff of the lease by discounting the remaining payments for the unearned finance income according to the Rule of 78's which is a method for calculating the final payoff. Paramount Financial allows this discount to allow greater flexibility to the customer as Paramount Financial is more interested in your needs and continued business than seeing all payments through the life of the lease. Call for a projection on a Paramount Financial lease 12, 18, etc. months into the lease to compare the Paramount early payoff to total payments required by most companies and the discount Paramount Financial allows.
- Does your leasing company offer both leasing & financing?
Most leasing companies only offer a leasing product. Paramount Financial offers both leasing and traditional bank financing. Paramount Financial will work hard to tailor a lease or finance program to meet your individual needs.
- What kind of company is your leasing company?
Large Funding Source: They are typically part of the financial services group of a major national or international bank or insurance affiliated mega company. They provide a specific financial product at low rates and do not have any incentive to consider transactions that do not fit their focus. They also have very little incentive to provide any reasonable level of customer service to any customer other that their largest ones. "You will be a Small Fish in the Ocean!"
Independent Finance Company: They typically create financial products to fit the market place they are in. They are self-funded so they can make independent business decisions and generally provide superior service to a limited number of customers. "You will be a Big Fish in a Small Pond with Paramount Financial!"
Broker: They typically provide the financial products of others and mark up the rates to make their profit. They generally have little on-going financial responsibility after the transaction is completed. Rates can appear very low, but may contain hidden costs. They are generally interested in maximizing profits on every deal and not concerned with building lasting relationships. Beware… Some Brokers represent themselves as something other than what they are. The bottom line is if they are not using their own funds, they are Brokers. "You will be a Fish out of Water!"
Paramount Financial P.O. Box 426, New Hampton, IA 50659 *(641) 394-5808 * Fax: (641) 394-5706 * Email:firstname.lastname@example.org