First National Capital, Inc. finances each piece of equipment under a finance lease/purchase agreement. There are several excellent reasons to finance your equipment through FNC: RETENTION OF WORKING CAPITAL: The rising cost of products, and hence, the cost of financing inventory and receivables has increased a company’s dependence on their first source of financing (the bank). First National Capital, Inc. is an excellent alternative to using a portion of the total credit exposure a bank is willing to extend. INITIAL OUTLAY OF FUNDS: When financing equipment, several financial institutions require a down payment of 10% to 20%. A $100,000 piece of equipment would require an initial outlay of $10,000 to $20,000 plus (where applicable) state sales tax on $100,000. Generally, the initial outlay for this same $100,000 piece of equipment under our agreement is $2,000 to $4,000. Also, our customer does not have to pay the sales tax at inception. Instead, the sales tax can be added to each monthly payment. LENGTH OF FINANCING: Most financial institutions prefer financing on specialty types of equipment for three or four years. A preferred customer may obtain five year financing. FNC is able to offer seven year financing. OPTION TO PURCHASE: Our agreement contains the option to purchase at the end of the term. The purchase price is normally as little as $1. If our customer wishes to reduce the monthly payment during the term of the agreement, they can increase the purchase option price up to 25% of the original equipment cost. NO DOCUMENTATION FEES: There are no documentation fees associated in preparation of our documentation. ACH DEBIT OPTION: Rather than writing a check each month, your monthly payment can be electronically transferred from your checking account. OPTION FOR DIRECT WRITE-OFF FOR TAX PURPOSES: Rather than having to depreciate the piece of equipment under three different depreciation methods as required by Internal Revenue Service, our agreement offers an option of directly reducing taxable income as the monthly payments are made.
If you have equipment needs, be it commercial, industrial, technological or otherwise, give First National a call or complete our FAST & EASY contact form and we'll let you know how we can help you accomplish your goals. Have a look at the variety of equipment we regularly finance. If you would like to inquire about financing a piece of equipment that is not on our list, then please feel free to contact us.  The list of equipment we currently finance is simply too large to detail, however, we can offer our services for nearly any commercial application.