Financing

[maddog07]

I am in the process of purchasing a coin-op in CA. The lending company wants to buy all off the equipment and lease it back to me. Has anyone ever done this type of financing before? Does this sound strange to anyone else?

[millenniumplus]

You can always call around to other lenders to find out what they do.
My guess is they want some form of collateral for the loan.

[PeterH]

And what do you have at the end of this lease? Probably NOTHING and you will have to buy the equipment back from them AGAIN. Do you not have a sufficient down payment for the loan? I'd shop around; it doesn't sound good to me...

[JamesWash]

Make sure what type of lease they offer. There are now many types of lease such as $1.00, 10 % or fair market value purchase at the end of the lease. A $1.00 purchase option at the end of the lease works just like a regular loan, except in legal context. When in doubt, ask your accountant.