October 2008

Financing is still available for business equipment
despite the current credit crisis

Over the last few weeks things have changed dramatically in the financial markets. It seems that with each passing day banking instability becomes more pronounced and stock market volatility does not subside – these messages are front and center on the evening news. With everything that is going on in the banking and finance arenas many of our clients (not to mention friends and family) have been asking if we are still able to lend and if there will be any credit available when their company needs it. Definitely valid questions and the answers are yes!

The reality is that we are coming out of an irrational credit pricing cycle – a period of time when liquidity flowed too freely and risk was not priced correctly or properly hedged against. In the wake of the mistakes that have been made financing continues to become stricter and lenders are being forced to exit the marketplace. First Star Capital never engaged in NegAm (negative amortization) loans or sloppy underwriting practices. Because of this we are not dealing with as much delinquency and bad debt as many of our competitors so we are able to stay focused on attracting and servicing new business as well as assisting our existing clients with their needs.

At First Star Capital we have always prided ourselves on getting to know our clients businesses and understanding specific company goals and opportunities. This has created an environment where we partner with our clients to assist in the realization of their objectives. Over the years we have been fortunate to consistently be awarded repeat business and referrals from our clients’ colleagues and industry associates. As a company First Star Capital is well positioned to continue to assist smart, creative, entrepreneurial people that need money to grow and maintain their businesses.

In all likelihood the lending environment is going to continue to contract and become more risk averse in the near term. Because of the stage of the cycle that we are currently in it is important that all new financing requests are well thought out and thoroughly presented with compelling information as to why it is a need rather than a want.

We continually decline new financing requests because there is no clearly defined justification for the new equipment or the ability to service the new debt is not apparent. Perhaps these are the applications that our failing competitors were approving? Gone are the days of instant approvals with rock bottom rates for sloppy / incomplete requests where the applicant is not even sure if the equipment will pay for itself.

First Star Capital

(800) 604-4817

brad@firststarcapital.com

www.firststarcapital.com

 

Did you know?

  • The bonus depreciation/enhanced tax write off’s from the Economic Stimulus Act expire at the end of the year
  • Working capital can be added to your lease for cash towards any business needs
  • First Star can refinance old, higher rate leases and equipment loans
  • First Star provides 100% financing to cover soft costs like sales tax, training, installation,freight, etc.

 

First Star has a new and improved website!  Come check us out today!

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First Star Capital is an established national firm that has financed thousands of different businesses across the country and has funded hundreds of millions of dollars worth of capital equipment.  We are an independent commercial lender with a specialty focus in equipment financing and leasing.  First Star Capital is a direct lender with the ability to quickly and efficiently fund new financing requests between $10,000 and $10,000,000.  Since we are a direct lender with our own funding and servicing capabilities we are able to deliver tangible value added financing solutions with the utmost flexibility.  First Star Capital has the internal ability to underwrite a variety of different financing requests – nothing is too big or too complicated.

For more information, contact Brad Harmon at First Star Capital (800-604-4817).

First Star Capital... Tomorrow's Growth Today