UCC vs. BANK vs. CASH
BUSINESS FINANCING HOME > UCC-BANK-CASH
DISCOVER WHY AN EQUIPMENT LEASE WITH UNION CREDIT CORPORATION IS THE PREFERRED CHOICE OF MANY SMALL BUSINESS OWNERS.
While it may be tempting to call your bank or write a check when you are in the market for an equipment purchase, the reality is that leasing your equipment begins to stand out after you take varying factors into consideration.
|APPROVAL TIMING||As little as 1 hour||Full payment due at date of purchase||1 to 3 weeks|
|SOFT COSTS||All costs covered including shipping, installation and taxes||All cost paid out of pocket at date of purchase||Not covered, must be paid out of pocket|
|BUDGETING||Fixed payment schedule, does not change after funding||Cash tied up in fixed asset, cannot be used for other business purposes||Variable rates tied to floating indexes|
|RESTRICTIONS||No age or mileage restrictions, private sales OK||Marketing or hiring plans may be delayed due to lack of cash||Equipment can be no older than 5 years, no private sales|
|COVENANTS||Asset specific lien, free use of equipment without being bothered||Key financial ratios may be negatively affected affecting current credit lines or future borrowing ability||Minimum bank balances to be maintained, annual financial review, loan can be called in at any time, blanket UCC-1 filing|