Traditional Bank Financing generally requires a “Blanket Lien”
on all of your assets.
Traditional Banking tends to create Co-Mingling of assets and places the owner
in a vulnerable position should liability suit be filed, because it is YOU, that
they may go after now, not just the company.
Traditional Financing requires your books to be open to the bank at all times,
and requires a “Bank Review” every 6 months.
Traditional Bank Financing, if not satisfied with books, they have the option of
increasing your interest rate depending upon their comfort level with your
exposure.
When securing Traditional Financing, you are reluctant to taking on additional
financing due to the bank flagging you as over exposed. This stagnates your
ability to grow the business.
When securing Traditional Bank Financing the bank pulls your credit report every
6 months and reviews to their satisfaction.
Traditional Bank Financing may require you to submit Interim Financial
Statements and Balance Sheets.
Lease-Financing “DOES NOT” appear on your D&B, Paydex, or bank review as added
debt, therefore it does not increase your debt ratio.
Lease-Financing is considered Pre-Tax Dollars therefore reducing your tax burden
on profits of your company.
Lease Financing is considered a Direct Operation Expense, therefore the full
amount of the monthly payment may be written off on your P&L.