How does 0% Interest really work?
In essence you are "buying down" the current leasing interest rate. First, we would work out a lease pricing program for you, then calculate what the interest portion would be over the term (i.e. 3 years) and deduct that from your invoice. If for example the MSRP of your equipment is $50,000, and the interest charges for 3 years was $5,000, you would submit an invoice to us for $45,000.

Since the lease payments are determined by the credit rating of the individual or company, the program would be based on customers that would meet the appropriate credit requirements of your pricing program (i.e. A/ B ratings). In addition, terms are usually limited to 2 or 3 years.

You can buy down the interest for any amount (i.e. 1.9%, 2.9%, 3.9%.). It is up to you!

Can it work for me?
There are both pros and cons with offering low interest rates. To some people offering 0% may be an incentive, but others may grow suspicious. Before creating a marketing plan around discounted interest rates, you must understand how your customer will react.

Often offering a nominal interest rate (i.e. 3.9%) is the best choice.

Does it cost my customer more?
In a word, yes. The pricing for discounted interest programs is generally higher than for a straight forward standard FMV program, this is due to the increase in risk and administration that is necessary.