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what's up fellow entrepreneur it's PK Patel from the Midwest corporate credit worth funding your business as our business equipment leases they're confusing and downright expensive is there a simpler and more cost-effective alternative of course there is otherwise I wouldn't be doing this video stick around to find out what this alternative is a side-by-side comparison and I'll show you how your business can save money so what is this magical alternative to an equipment lease symbol it's a business line of credit just last month I had a client named Matt Matt owns a tree care business in Pittsburgh Pennsylvania and he needed about $80,000 to get new equipment for this upcoming season the offer that Mack received from the secret meant leasing company was this $80,000 at 14% interest for two years this came out to thirty eight hundred and forty-one dollars a month I sent Matt up with a hundred thousand dollar credit line at seven and a quarter interest rate interest only payments this means if Matt draws the $80,000 that he needs to purchase this equipment his payment is only gonna be four hundred and eighty four dollars per month by now the benefits are obvious of the line of credit over the current lease his payment is much lower his interest is almost half but the one benefit that you're not seeing is the fact that when Matt pays this line completely off he's going to be able to reuse the funds again and he could deploy that capital wherever he wants he could either go out and buy more equipment for $80,000 and double or triple his fleet he can also use it to fund receivables which means he's able to offer service now pay later terms as best customers I know what you're thinking this sounds too good to be true and you'd be perfectly justified in thinking so but there are some conditions you didn't think it'd be that easy did you number one if you're gonna fund equipment with a line of credit you have to make sure you have high enough margins and sufficient cash flow in order to pay the line down aggressively banks typically like to see their money every six to eight months which means the line has to be paid down Matt is a service based business so he didn't have that issue he had high gross margins and he had enough cash flow and he was disciplined enough to be able to pay the line down in six to eight months and repeat the process number two you have to have excellent credit if the lender is gonna trust you with $100,000 unsecured line of credit to do whatever you want with they want to make sure you have history of on-time payments and good financial management skills now here's the million dollar question can your business use a line of credit just like Matt if so visit apply Midwest comm click on the green button in the upper right hand corner to get started we'll do a free consultation and if you like what you hear we'll set you up with the same product at Mack rap if you enjoyed this video subscribe to our YouTube channel for Midwest corporate credit i'm PK patel thank you for watching