How can I compare the true cost of financing or leasing for gas pumps, point of sale (POS) or underground storage tanks?
How to compare the true cost of financing or leasing for gas pumps, POS and more.
If someone suggests that they can give you financing on your convenience store equipment purchase that sounds too good to be true, it might well be. There are financing promotions offered by major manufacturers of equipment, such as Gilbarco or Veeder-Root, and major oil companies for local jobbers that may provide attractive lease and finance rates. These offers are legitimate, and provide an opportunity for fuel retailers to benefit from low financing or leasing rates for fuel dispensers, LED upgrades, beer caves for other convenience store equipment. With any financing offer, be sure to ask for and compare the following items:
- What is the monthly payment for this equipment financing agreement?
- Does the monthly payment change at any time?
- What payments are required up front? When are these payments required?
- What payments are required at the end of the financing agreement term?
- What is the true term of the loan – how many payments are there in total?
- Do I have clear title to the equipment following the final payment?
- Are there any other costs or fees that I should be aware of?
- If you are offered “free” equipment, would your interest be better if you didn’t accept the “free” equipment?
- If you are offered a promotional interest rate for a limited time, such as $100 /month for 120 days, are you charged interest during this promotional period that is then included in the total amount financed? What is the true cost of the promotional rate?
Patriot Capital is the leading supplier of financing and leasing for fueling equipment because we focus on providing hassle free and transparent financing to the convenience store and commercial fueling industries. We finance equipment including: gas stations and dispensers, underground storage tanks, point of sale, LED’s and price signs.