What is a $1 Buyout?
It’s Friday again and that means it’s time for another edition of Direct Capital’s Finance Fridays four-week series. This week, we highlight one of our leasing products: the $1 buyout.
But, before we dive in to the specific buyout payment option, we want to first explain our equipment financing program.
Equipment Financing FAQ
- What can I use equipment financing for? You really can use it for just about anything – restaurant equipment, computer hardware, POS terminals, construction equipment. The list goes on and on.
- Why should I lease when I can buy? Our equipment financing program gives you access to new or used equipment quickly, without tying up your cash reserves. Plus, as you will find out below, you will have the option to buy at the end of the agreed upon term.
- How much can I borrow? We offer equipment financing up to $150,000 with application only. Anything over that would require financial statements and a more in-depth review of credit and other factors.
- What are your terms? Pay back your loan to us any time between 30 days and 72 months.
- What are your rates? Our equipment financing rates are based on credit history, years in business and asset type. We have some of the most competitive rates in the industry, so all you have to do is call our office and find out what we can offer you!
- What are your repayment options? For equipment financing, we have two payment options: the $1 buyout which you will learn more about today and the fair market value option that will be highlighted next week.
- Are you flexible with the payment schedule? While we do set the terms in the agreement, before signing on the dotted line you can choose a payment schedule that works well for you. We traditionally handle monthly payments, but seasonal and deferred payments are also available. This way, if you are a business that generates a bulk of revenue in the summer or winter, you can make arrangements to pay us back during those highly profitable months.
- Do you lease equipment to start ups? The short answer is yes. But, there are some conditions. We consider ‘start-ups’ to be companies that have been in business for less than 2 years and our maximum leasing amount is $35,000.
Now that you have an understanding of our overarching equipment financing program, we’ll break down the $1 buyout options for you.
What is a $1 Buyout and How Will it Help Me?
A $1 buyout, also known as a capital lease, is any lease that has a bargain purchase option at the end. And what exactly do we mean by that?
Generally with a $1 buyout option, you will have a higher monthly payment, but for a good cost at the end of the term to own the equipment. Most often, the cost to own will be $1.00. The $1.00 is used to transfer the title from our company to yours.
How will you know if a $1 buyout is right for you? Take a look at the equipment you’re buying. The $1 buyout option is typically a great option for customers interested in longer-lasting equipment like construction, auto repair, cleaning, material handling, and others. The longer the lifecycle, the better the $1 buyout option becomes.
How to Get Started
It’s easy – just give us a call! We will assess your business needs – how many jobs do you do on a regular basis, how much revenue you gain per job, etc. – so we can fully understand how your business will benefit from the lease.
We will want to know what the equipment is you are looking to finance and how it will generate revenue for your company. Once you provide us with that information, the rest is up to us.
Get started today by giving us a call at 866-777-0117 or clicking on the banner below!