Steps to be Taken Before Funds and Equipment are Released
You have reached the end of your financing journey. You’ve made your case for financing and considered all the possible questions that would need answering before you financed. You researched your financial lender to feel confident you’ve made the right choice. You successfully navigated and filled out the financing application. And now, you are here.
What are the final steps? Direct Capital has created a quick guide to walk you through the process of actually receiving the equipment you financed.
When the lender releases the funds to the vendor, they get paid and you get your equipment! However, there are four steps that must occur before the lender will release the funds for your equipment:
- The delivery date of the equipment must be set and the lender must indicate how they would like to receive their funds.
- When the payment terms are finalized, the vendor delivers the equipment to you.
- It is imperative that you examine the delivered items carefully. Verify that your equipment appears exactly as advertised and is completely free of damage or defects.
- If everything looks good to you, give the lender a verbal authorization.
When those four requirements are met, the funds can be released to the vendor. So what’s next?
Final Steps of the Financing Process
Your contract begins as soon as the funds are released, which means your lender has paid the vendor for your equipment. In accordance with contract terms you set with us, you start to make your payments.
No matter how long your terms is, you may have the opportunity to purchase your equipment at a “fair market value” price, or a set price that was outlined in the initial contract. Fair market value means that you receive a lower lease payment and, at the end of the term, can choose to purchase the equipment you financed or return it.
For more information on financing your next piece of equipment, or to learn more about Direct Capital, please visit our website.