Vendor Financing FAQs

Is Madison Capital a broker or direct funding source?
We are a direct funding source for equipment transactions up to $750,000 and all size of vehicle fleets. For transactions exceeding $750,000, Madison Capital has brokerage capability and experience for transactions up to $10,000,000.

How do my customers apply for leasing?
We will provide you with customized lease applications for your customers. They can also go online to madisoncapital.com to complete an application or download a PDF.

Who can lease?
Companies of any size, organizations and associations

Does Madison lease anywhere in the U.S., Canada and Puerto Rico?
Yes. We lease equipment and vehicles in the U.S., Canada, and Puerto Rico

Can I offer “private label” financing through Madison Capital?
Yes. Private label leasing allows you to provide a leasing option to your customer in your company’s name with funding from Madison Capital.

My customers pay cash. Why should I offer leasing?
Offering leasing gives customers options and the ability to purchase more from you. Many of your customers may pay cash, but how much more could they afford if you offered fast and easy financing options? Also, if those that paid cash leased instead, they would have more capital to grow their business thus needing more and more of your equipment. Another thing you have to consider is, how many potential sales have you lost to competitors offering a low cost alternative to acquiring their equipment?

My customers think leasing is too expensive. What should I tell them?
There are many benefits of leasing and it is not expensive. Leasing is simply an alternative source of funds that helps to free up capital for business expenses. Eighty percent (80%) of businesses use leasing for some or all of their equipment. We are available to offer training to your sales staff or they can simply direct the customer to Madison to answer questions and facilitate the credit approval. We know leasing as well as you know your products. We are here to assist you and make you more money.

Does it cost anything for me to offer leasing?
No. Offering leasing will never cost you anything unless you choose to participate in a blind discount/subsidy program to offer your customer promotional pricing such as 0% or 5.99% financing. Offering financing at the start of the sales cycle will significantly shorten the sales cycle and increase the overall amount of the purchase. We overnight your check within 24 hours of acceptance of your equipment from the end user

How long until I get paid?
As soon as the equipment is delivered and accepted, we will pay within 24 hours.

Am I liable if lessee stops paying?
No, once you deliver the equipment and the customer finds everything acceptable we pay you.

What if my customers want to finance additional equipment?
If your customer would like to add equipment to their lease, we can add the amount to their existing contract and adjust the payments or start a new contract. For those customers who know they will have additional purchases in the near term, we set them up with a “Master Lease” whereby additional equipment can be added from time to time merely by describing that equipment in a new lease schedule executed by the parties. The original lease contract terms and conditions apply to all subsequent schedules. To be contrasted with a lease contract for a single transaction involving a specific unit of equipment, a Master Lease is essentially a line of credit to draw from over time in order to purchase equipment.

How do you calculate monthly payment?
Monthly payment is calculated by equipment price, lease term, buyout option and credit level. If you would like an estimate on your monthly payment, you can use our lease payment calculator.

What dollar amount limits (high or low) does Madison Capital have?
Madison Capital will fund transactions from $10,000 to $10,000,000.

What are the up front costs?
There are various structures depending on the customer’s credit, length of term and tax structure. Options generally include $0 Down, first month only, first and last payments, or a 10% Security Deposit.

What minimum credit score do you desire?
We prefer to see credit scores above 650; however, if the customer provides adequate financial information, strong personal financial strength and/or additional collateral, we will consider lower credit scores. We will do everything we can to get a deal funded for your customer.

What credit information do you require?
For smaller transactions we usually only require a completed credit application. For larger transactions and “story” credits, we may ask for financial statements, tax returns, and personal or corporate guarantees.

What are Madison Capital’s interest rates?
This question is generally asked when a customer is comparing a lease to a bank loan. As described above, rates and payment amounts are based on the total amount financed, structure (term & buyout), and the overall credit strength of the business and guarantors (if any). A bank may take a blanket lien on all current and future assets, require money down (10-20%), require minimum average balances be maintained and generally offer floating rate terms, while Madison Capital will only file a UCC on the financed equipment and provide 100% fixed rate financing. It is generally best to utilize bank credit lines for short term cash needs and utilize a leasing company as a secondary source of financing for longer term assets and take advantage of potential tax benefits.