1. CALL ON DEMAND CLAUSE – Most bank contracts have in the fine print a clause that allows them to call the loan at any time. This means even though you are making all payments on time they can force you to pay off the contract. It could be that interest rates have gone back up and the are having to pay more for deposits, they have had other loans go bad and need to raise capital like during the Great Recession, or maybe they don’t like your industry anymore. It makes no sense to put your company in jeopardy of having your loan called. At Intech it’s a commitment for the full term of the contract and we never saddle you with Call on Demand provisions.
2. COLLATERAL – Most bank contracts have a provision in the fine print that gives them the right to take all your company assets as collateral. All equipment now owned or hereafter acquired, all inventory and all receivables. This is commonly referred to as a “blanket UCC” or “first born and then some”. At Intech the only collateral is the machine we are financing.
3. BANKS REQUIRE LOTS OF PAPERWORK – Most Banks require financial statements, tax returns and tons of paperwork even to approve the smallest transaction. And then in the fine print have a provision that requires you to provide them financial statements monthly, quarterly or yearly after the loan has closed. Do you really want to calls from the bank requiring financial statement explanations or deal with restrictive covenants? At Intech most transactions are approved with a short credit application with no financial statements or tax returns and we never ask you for paperwork after your transaction has closed.
4. CREDIT WHEN YOU NEED IT – If you use your bank for equipment loans you lower the availability on your working capital line of credit and capital when you need it.
5. SPEED & EFFICIENCY – Bank loans can take days or even weeks to get an answer and require tons of paperwork. At Intech most transactions are approved with a simple credit application and are approved within hours.
6. SIMPLICITY– Bank contracts are typically long, complicated and contain restrictive covenants. At Intech both our lease and loan document is only one page and never contain restrictive covenants.
With Intech the only collateral is the machine we are financing and we never impose blanket liens, call on demand clauses or any other restrictive covenants. At Intech you have a stable financial partner that understands the value of the equipment and a consistent 20 plus year track record funding manufacturing companies just like yours.