Frequently Asked Financing Questions

What are the two main reasons businesses lease?
How many ‘Years in Business’ is required to lease?
What percentage of businesses lease their equipment?
What score is considered a good credit risk?
Can AFP provide financing for someone with challenged credit?
What different program options does AFP offer?

 

What are the two main reasons businesses lease?
Businesses lease some or all of their equipment to conserve working capital and for tax advantages. * As a business owner it makes more sense to purchase the equipment and technology that you need TODAY and spread the payments out over time. The equipment or technology will start generating revenue for the business or provide needed efficiencies immediately, freeing up working capital for day-to-day expenses. A lease is not considered a long-term debt or liability. It is an off-balance sheet transaction. The payment is taken as an expense each month; therefore bringing down your taxable income. There are many tax benefits that a lease offers as well.* They are dependent on the current or forecasted tax situation of the business. Please contact your tax advisor to see what makes the most sense for your specific situation.

How many ‘Years in Business’ is required to lease?
American Financial Partners has many financial products that fit the needs of long-term businesses as well as companies just getting started. The team of leasing professionals at AFP will help you decide which financial product provides the most value to your business.

What percentage of businesses lease their equipment?
According to the U.S. Small Business Administration and the U.S. Department of Commerce, more than 85% of the businesses in the United States lease some or all of their equipment, to the tune of nearly $270 billion a year!!

And 89% of those companies who lease will do so again in the future. Leasing business equipment just makes good sense.

What score is considered a good credit risk?
The average FICO score in the U.S. is 725. Normally, anything below a 650 score is considered ‘compromised credit’. At AFP, we take into consideration the entire “package”, not just the credit score. If a customer has a lower score, the time in business, the cash situation of the business, and the equipment, among other things are all factors taken into consideration. We value the human aspect of your business, not just your credit score. We work very hard to provide financing for every business.

Can AFP provide financing for someone with challenged credit?
Yes. We have many programs, each designed to work for specific levels of credit quality. We look at the full package and work very hard to put together a plan that fits your individual needs.

What different program options does AFP offer?
AFP offers many different program options. Please click here to see some of the creative plans we can offer your business.

*AFP is not a tax advisor. Please consult your accountant for tax advice specific to your needs.

If you would like to talk with us directly about your financing options, please call 888.237.4520 or email info@financewithafp.com.