Loan

We Make It Simple

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Here Are Some Of The Ways We Make Equipment Financing Easy…

Paperwork, Schmaperwork – App Only up to $250K!

Kingswood now has application only funding limits up to $250,000. That means less time and paperwork needed to get you the financing you want to make that next big equipment purchase. And typically these credit decisions are made within 2-4 business hours.

Minimum Ownership Requirements – Corp Only Options

Kingswood has options to secure businesses with established credit without a personal guarantor, an option called Corp Only. And for businesses without the established credit, Kingswood has options to secure financing with a minimum of 1% ownership. Either way, that means less time getting every owner’s signature to apply or to sign for financial documents.

Electronic Documents

When it comes to closing the deal for your equipment, almost no one wants to wait for paper documents in the mail any more. With eDocs financial documents can be sent instantly to your email address for signing.

 

No Payments for 90 Days

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Give Your Customers The Power To Do More

Qualified buyers can buy the equipment they want now, and make no monthly payments for 90 days.

“Buy Now & Pay Later”

Program Highlights

  • The first payment will be due 90 days from the date of funding. For example, if a deal funds on December 15, the first payment will be due March 15th.
  • Certain restrictions apply, including, but not limited to: Startup restaurants, startup salons, ATM equipment, security monitoring agreements are not eligible.
  • Commercial customers only. Qualified businesses must have at least 2 years time in business to qualify.

Program Benefits

The benefits for your customers are obvious. They can get the equipment they want now and use that equipment to earn money for 90 days before the first monthly payment is due. Tell your customers to keep their hard earned cash and let the new equipment earn they money to pay for itself!

This program is also very popular with equipment suppliers who can leverage this limited-time offer to help earn more business. Tell any customer that shows interest in the option that there is no cost or obligation to get approved.

How can I get my clients Approved for No Payments for 90 Days?

You and your customers can apply like normal. We simply need to know that your customer is interested in this option. If there is mention of No Payments for 90 Days on an application we will immediately begin qualifying for this program.

Don’t wait until it’s too late – Tell all your customers about this option and share our secure application to find out if they qualify. It’s that simple!

Small Business Loan Line of Credit

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Ask us for a Line of Credit. And get all the benefits that come with it:

  • $3,000 – $1,000,000 of working capital
  • Accessible for you to draw upon as needed
  • You pay nothing until you withdraw funds, and only on the funds you draw
  • Use your capital in any way you see fit to grow your business

A Line of Credit can be made available to you in as little as 5 business days, with minimal paperwork required.

It gives you easy access to working capital. And the security of never having to worry about cash flow.

Get No Obligation, Pre-Approved Terms – Apply Now

Kingswood Disaster Relief Program

Red umbrella in storm
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Equipment Financing, Bridge Loans, & Business Lines of Credit to get Businesses Back on their Feet

Kingswood Leasing has been around for 26 years and over the years has been witness to natural disasters that have affected many of our partners and clients. Sympathetic to the pain and suffering that was caused by these events, Kingswood has always taken every opportunity to do more than normal to help these people get back on their feet. That experience over the years has evolved into an established commitment to these individuals:

“I am developing a Kingswood Disaster Relief Program that will support the rebuilding of businesses affected by natural disasters.” ~ Clifford Metcalfe Jr., Owner & President, Kingswood Leasing, Inc.

Program Highlights

  • Reduced Fees: We’ve negotiated with our banks to limit documentation fees to an absolute minimum to process paperwork.
  • Flexible Payment Options: Qualified buyers may choose from several popular payment options, such as No Payments Due At Signing or 90 Day Deferred Payments.
  • Giving Back: We will donate 1% of the total financed amount to the American Red Cross towards the relief effort of the applicant.

Experience Matters

Businesses that have closed down have much more difficulty obtaining financing had they not had the calamity in the first place, it’s a fact of finance life. A less experienced finance professional may not take the time or know how to present a business that has experienced a natural disaster. Getting back on your feet is too important to risk. We suggest that you partner with an experienced finance professional like ourselves who can leverage over 200 years of combined financial experience to get these afflicted business owners the best terms available for their situation. Many finance companies either run away from or try to take advantage of these business owners. This finance company is running towards those in danger, and bringing to bear every available resource we can to get these business owners back on track.

We Want To Do Our Part, Tell Us How We Can Help

If you are a business owner in need of capital following a natural disaster, or know someone who is, please see our page and application customized for this program. This application asks some additional questions about the status of the business that will be relevant for the purposes of securing capital. And please do not hesitate to contact us should you have questions. We want to do our part, tell us how we can help.

Big Mike’s Sports Bar & Grill

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Kingswood Leasing Is Proud To Support Louisiana Business’ Return After Great Flood of 2016

In August of 2016 torrential rains dumped three times as much water as Hurricane Katrina in certain areas of Louisiana. Thousands of homes and businesses were literally underwater with significant damage. One of those hardest hit businesses was Big Mike’s Sports Bar & Grill. The flooding forced the closure of the business during a year where they were expecting to break there previous year’s record breaking sales. Mike O’Neil, owner of Big Mike’s, immediately started rebuilding with the hope of reopening within 6 months, but cash flow dried up within 3 months, which put the future of Big Mike’s in jeopardy. An employee of Big Mike’s who was anxious about the return of the business, Emily Ashford, reached out to Jon Taffer via Bar Rescue’s website, and asked for help. Bar Rescue and Jon Taffer responded, flew to Denham Springs, and set a goal of reopening the restaurant within two months.

The Make-Over

Taffer himself had concerns about the ambitious renovation and whether it could be finished on a two month schedule. Bar Rescue invested approximately $750,000 into Big Mike’s Sports Bar & Grill in October of 2016 to make it happen. Unlike most Bar Rescue businesses, this show wasn’t about rescuing a failing business, but a once thriving business that was devastated by the Great Flood of 2016. Kingswood Leasing was asked to secure approximately $85,000 in financing for the client in a very short time frame in order to fit into the production team’s schedule. The entire process from application to funding was accomplished within one week so that the new equipment Big Mike’s needed would be delivered and installed in time for the tv production crew’s filming schedule.

The Show

In the episode, titled “Bar over Troubled Water”, Taffer expresses his concern about the amount of work needed to do a complete renovation in less than 5 days. Taffer brought 50 crew members and hired 20 local laborers for the project, who worked around the clock for 5 straight days.

“In the end, I want Mike and Jocelyn to tell the people of Denham Springs that ‘if we were able to get back in business, so can you'” – Jon Taffer, Bar Rescue, Bar over Troubled Water

The one-hour episode premiered on Sunday, March 26th, and was watched by hundreds at the bar the same evening. At the end of the program acknowledgements were given to those that contributed to the cause, of which included Kingswood Leasing.

Here is a preview of the episode:

Proud Supporter

Kingswood Leasing is proud to support Big Mike’s Sports Bar & Grill. We couldn’t be more pleased that everyone trusted us to do our small part to make this a great story for the O’Neils. We congratulate everyone who helped make this possible and look forward to seeing this local community happy and thriving again.

If you would like to learn more about Big Mike’s Sports Bar & Grill visit their website at www.bigmikessportsbarandgrill.com.

Loan or Lease?

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Bank Loan or Equipment Loan or Equipment Lease?

Business owners have options when it comes to commercial equipment financing. The most common are bank loans, equipment loans, and equipment leases. This post will address the advantages and disadvantages of each.

What’s the difference?

Bank Loan

If you have a good credit history you can qualify for a bank loan. Depending on available terms at your bank, these loans can have the lowest payout. If you are buying new equipment and your dealer or bank qualifies you for promotional-rate financing, such as 0%-5%, take that money and run. No one can offer you better terms.

Advantages:

  • Typically the lowest payout over the life of the loan

Disadvantages:

  • Small credit window – 85% of applicants are declined
  • Typically require significant down payment
  • Normally require significant amounts of tedious documentation and income verification
  • Sales tax may be due upfront
  • May tie up available lines of credit
  • Process usually takes several weeks

Equipment Loan

Equipment loans can come in many different names; Equipment Finance Agreement (EFA), Capital Lease, Finance Lease, $1.00 Buyout… all are considered equipment loans by the IRS. The IRS does not classify these leases as “True Leases” because even though they incorporate the lease mechanism for the loan, the buyout is not significant enough to be considered a true lease. More recently equipment loans have been very popular because of Section 179. For example, depending on the tax year, businesses could immediately deduct the full cost of equipment, up to $500,000, against their taxes. They are also popular because these loans are easier to qualify for than bank loans, have less paperwork, and typically take much less time to fund.

Advantages:

  • Equipment Loans are Lease-To-Own – You own the equipment after completing agreed upon payment schedule
  • Easier to qualify for and less paperwork than a bank loan
  • Low to no down payment required
  • Similar finance terms as bank loans up to 5 years
  • Fast funding, in as little as 24 hours after signed documents are received
  • Immediate tax deduction available for cost of equipment

Disadvantages:

  • Payments are not fully tax deductible
  • Payments can be higher than a lease with a residual buyout
  • No option not to buyout equipment

Equipment Lease

The IRS classifies equipment leases as True Leases, which are the same type of transaction as leasing a car. With a True Lease there is a significant buyout, typically 10% – meaning if you lease a $25,000 piece of equipment, the buyout option would be $2,500. Equipment leases are popular because usually 100% of the payments are tax deductible. They also typically offer the lowest monthly payment option because you’re often only financing 90% or less of the equipment. This type of transaction does include a choice at the end of the lease term to either buyout the equipment, return the equipment, or continue renting the equipment.

Advantages:

  • Typically the lowest monthly payment option
  • Payments are usually 100% tax deductible
  • Easier to qualify for and less paperwork than a bank loan
  • Low to no down payment required
  • Similar finance terms as a bank loan up to 5 years
  • Fast funding, in as little as 24 hours after signed documents are received
  • Includes buyout options

Disadvantages:

  • In order to own the equipment the buyer has to pay to the residual amount not financed in the lease agreement

So which one is best and when?

Why Equipment Leasing Is Usually Better Than An Equipment Loan, But Not Always

This is why we have a job. We talk to customers every day looking to finance their next business equipment purchase, and every one has their own situation and experiences. With that being said, in many cases using an Equipment Lease to purchase equipment can have the greatest bottom line savings.

Let’s say you want to buy some equipment for $40,000 and finance it over the next 4 years…

Equipment Cost:    $40,000

Loan/Lease Term:    48 Months

Quoted Lease Payment:    $1,194

Quoted Loan Payment:    $1,261

Lease Residual:    10%

Your Tax Rate:    30%

                               Lease          Loan

Total Payments:   $57,312     $60,528

      Tax Writeoff:   $17,194      $12,000

After-Tax Payments:  $40,118     $48,528

     Residual:  $4,000      $1

Net Ownership Cost:    $44,118     $48,529

Total Lease Savings:   $4,411

This example shows how a borrower can save $4,411 simply by choosing an Equipment Lease over an Equipment Loan for the exact same piece of equipment. Buyers travel hundreds of miles to buy equipment for less when they can save thousands just by choosing to finance with a True Equipment Lease as opposed to a Bank or Equipment Loan.

Is A True Equipment Lease Always The Best Choice?

There is no one solution that is always the best in the world of business finance. That is why we here at Kingswood are ready to find the best solution for your specific situation.

If, for example, you are having an exceptional year and have abnormally high income, a faster depreciation may make a lot of sense. Our finance calculator automatically provides you with a free estimate on total bottom line equipment cost after a Section 179 deduction, so that you can see the potential savings before committing to any purchase. As always, check with your accountant before making any decisions. We are a finance company and are aware of these tax benefits, but only your accountant can tell you if this is the best tax application for your business.