This post is part of a series dedicated to the ins and out of the financing process. This is the final post. Click here to see the previous part of the process.
Part Four- The Funds
Last week we talked about the financial documents. At this point in the process, you have reviewed the documents carefully, signed each one, and returned them to the lender.
Once the signed documents have been returned to the lender, the lender will ensure that the documents are signed in all of the correct places and that nothing has been altered. Now, the lender may begin the funding process.
At this point, the lender will call the vendor for the delivery date of the equipment and request their payment terms. Now, the vendor will deliver the equipment to you. It is your responsibility to look over the equipment and ensure that it is exactly as advertised and free from damage. Look carefully, this is an important step!
If all is well with delivery, you’ll give the lender a verbal authorization and funds will be released to the vendor for payment. In almost all cases, your financial contract will start as soon as money leaves the lender’s hands.
Once the funds have left the lender, the financing process is complete and the responsibility for repaying the loan lies in your hands. Be sure to make payment in accordance with the payment terms outlined in your contract and call the lender directly if you have any questions.
If your financial agreement is a lease, you will most often return the equipment at the end of the lease term, but in some cases you may be granted the opportunity to purchase the equipment at “fair market value” or at set a price outlined in the initial contract.
Now, you’re ready to finance your next piece of equipment!
In case you missed the other posts in this series: