Financial Pacific Leasing Inc. from Umpqua Bank offers equipment leasing and financing to small businesses. They specialize in financing agreements for equipment up to $150,000.
If you’re considering an equipment lease or financing equipment, we can help guide you with answers to these questions:
Financial Pacific Leasing is a direct provider of small-ticket equipment leases. The company began in 1975 and has become an industry leader in innovative financing solutions.
In 2013, the company joined Umpqua Bank, becoming part of the bank’s lending platform. The company states it wants to help companies grow with equipment financing options.
Financial Pacific Leasing Inc. works with third-party originators and lessors to provide equipment financing and underwrites their funding.
The company’s commercial division provides financing for new and used equipment. The prices generally range between $5,000 and $150,000.
Small Businesses can acquire equipment financing in several ways. You can lease equipment, which is essentially a form of renting.
In addition to leasing, it also offers equipment loans to purchase the equipment. You can get an equipment finance agreement (EFA), where the equipment acts as collateral.
In an EFA, the total cost of the equipment and interest is calculated and divided into equal payments. There’s no discount for paying off the loan early.
You can also get a Principal and Interest Loan (Standard P&I Loan) to acquire equipment. This is a more traditional loan, although the equipment still acts as collateral.
The main difference between an EFA and a Standard P&I Loan is that if you pay off the standard loan early, you save money on interest.
Financial Pacific Leasing considers financing agreements on an application-only basis.
The company doesn’t publish minimum requirements for credit score, income, or years in business.
You can complete the application to determine if you qualify.
Determination is based mainly on the financial strength of your company.
Rates tend to run high depending on your leasing and how much it costs.
There are also various fees, such as Equipment inspection fees, that accrue throughout the loan. You can find a copy of the fee schedule on the company’s website.
The company leases most types of equipment, both new and used. Most industries qualify, but there are some restrictions.
They won’t provide equipment leasing for:
Financial Pacific Leasing customers need to complete a credit application.
The company’s underwriters will review the application to determine your eligibility.
You can apply for Financial Pacific Leasing through United Capital Source. Complete our one-page application online.
One of our loan experts will reach out to discuss your needs and determine if Pacific Financial Leasing is the right business for your equipment financing needs.
We can help you complete and submit the application form. We will also help you with any additional documentation that might be required.
Pacific Financial Leasing will let you know their determination after receiving the application and any required paperwork. The funds go to the equipment vendor to purchase or lease the business equipment if approved.
After receiving your equipment, you will begin to make payments. You’ll have a fixed payment for your financing agreement in all cases.
For leasing, you’ll make your scheduled payments for the lease term. At the end of the lease term, you’ll either return the equipment or exercise your buy option.
For some leases, the total price of the equipment is divided over the lease term. At the end of the lease, you purchase the equipment for $1. This option is essentially a lease-to-own agreement.
For operational leases, you’ll have the option to purchase the equipment at fair market value at the end of the lease. This option is a cheaper monthly payment but requires a higher payment to own the equipment at the end of the lease.
For equipment financing, you either have an EFA or Standard P&I Loan. For an EFA, you pay a fixed rate for the financing agreement.
Whether you pay it off early or on time, the cost to finance remains the same or fixed. With a Standard P&I Loan, the interest adds during the life of the loan. If you pay off the loan early, you save money on interest.
The company is an established leader in the industry. With over 40 years of experience, it has built relationships with equipment vendors and 3rd-party originators to offer multiple financing options for equipment leasing and financing.
The company doesn’t require bank statements and offers special financing options for startups. Getting 100% of the equipment cost financed is also possible, although some agreements will require as much as 15% as a down payment.
Financial Pacific Leasing also offers fast turnaround times to fund equipment financing. The process is usually quicker and less involved than applying for equipment financing through a bank or traditional lender.
The company’s rates are higher than the industry standard for equipment financing.
The higher rates are compounded by the extra fees, which can add up throughout the financing agreement.
While the company offers a faster underwriting process, it is still somewhat strict and automated. It could be challenging to qualify.
In addition, the company has poor user reviews. Their BBB rating is A-, with 1 out of 5 on user reviews. On TrustPilot, the company has a 2 out of 5 rating on 13 reviews.
We prepared a pros and cons list for a quick summary.
Pros:
Cons:
Financial Pacific Leasing is a legitimate lender accredited by the Better Business Bureau.
Positive reviews discuss the company’s customer service and application process. Customers say the process is less involved with the bank.
The company has a lot of negative reviews. Most reviews talk about confusing financing agreements with hidden fees and liabilities.
Some talk about not knowing they had to sign a personal guarantee or monthly payments working out to more than the total financing agreement.
Some customers even claimed the company lied about terms and payments.
There are several reasons why the company might deny an applicant. If you applied and were rejected, your denial letter should indicate why.
You can call them if you need a more detailed explanation.
There are other lenders available. Many lenders offer different equipment financing options to consider.
Financial Pacific Leasing is best for businesses that prefer working with established lenders and only need small equipment financing. The company offers a long history of equipment financing and partners with many leaders in the industry.
Based on reviews and our experience working with the company, we rate them as 3 out of 5.
Disclaimer: The Financial Pacific Leasing trademark is owned by Financial Pacific Leasing, Inc. and its use herein is for reference purposes only and it does not indicate sponsorship or endorsement from Financial Pacific Leasing, Inc.
