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Merchant Card Service - Leasing - Helpful Hints
Free Equipment???
Our feelings are, and you know it is the truth, that nothing is free; and, those who play the free equipment game are leasing a single piece of equipment to you for $59.99 or even $29.99 per month for 36 months. Let us assume your credit is B rated and the lease factor is .295, after which you will have paid a hopping $1,078.00 at the end of 36 months for piece of equipment that today would cost you less than $350.00 (downloaded / mailed to you ready to process). Do not forget most leases are structured with a 10% buy out at end of lease, very few credit card equipment leases have a $1.00 dollar buy out.
Examples: of Leasing amounts with a 3.0 lease factor
19.95 ÷ .03 = $665.00 - $347.40 (Cost of equipment) = $317.00 for the sales person
24.95 ÷ .03 = $831.67 - $347.40 (Cost of equipment) = $484.27 for the sales person
29.95 ÷ .03 = $998.33 - $347.40 (Cost of equipment) = $650.93 for the sales person
Note: The above example is not to discourage you from leasing, if you're a restaurant / retail owner new or old and you need POS equipment that cost several thousands, the lease is the way to go.
Read article for the Leasing vs Bank Loan:
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