Are You Pre-Qualified to Purchase a Modular Building?
You need a modular building. Either you’re in the market to purchase a permanent modular building or lease mobile office space and temporary modular structures. Depending on the project, you may prefer not to pay cash up front. So, you need a loan. But are you pre-qualified, and for how much? Pre-qualification can help you gauge your purchasing power and options without a hard credit check before applying for a loan.
At Pacific Mobile Structures, we work with our purchasing and leasing customers to help them get the financing they need. While we do offer in-house financing, we also work closely with folks like Bill Nash at Raymond Leasing, Inc.
Raymond Leasing, Inc. provides:
- Both operating and true leases.
- Finance leases.
- Municipal finance leases for commercial modular buildings and specialty truck trailers.
We talked with Bill to put together some helpful information that will offer you a quick at-a-glance look at whether you’re pre-qualified before you find out for certain. Below, we’ve outlined a series of pre-qualification questions you’ll need to answer and a list of information you’ll need to provide during the pre-qualification process, so when you get there, you’re prepared.
Are you ready? Let’s jump in.
When looking for a quote, there are first some parameters that you’ll need to fall within to begin the pre-qualification process, including:
- Dollar Size: Starting at $15,000 to over $5,000,000
- Term: 24 months to 84 months, and long-term options up to 120 months dependent on credit
- Payment Structures: Straight term, term with balloon payment, and step structure
- Deal Content: Deal can be inclusive of all hardware or hardware and soft cost; the amount of soft cost being credit-dependent
If you fall within those parameters, you’re off to a great start and can begin to prepare the required information to generate a quote.
Information Required to Generate a Quote
The following information is essential to generate a quote:
- Operating or finance lease
- Name of customer
- Location of building
- Type of customer: Are you a private school, commercial business, charter school, municipality, etc.?
- Number and size of buildings to be financed.
- New or used building
- The dollar amount to finance
- Dollar amount composition: Does the cost include just the building, or is it also inclusive of delivery, site work, add-ons, accessories, and more?
- Terms requested
- Building specifications and floor plans/drawings
The most important question you need to be able to answer before a quote can be generated is, “Can you cash flow the monthly obligation?” Oftentimes, customers believe that they can leverage the new building to generate the funds needed to pay for it. It is important to note that you must have the cash flow upfront to commit to the monthly obligation. Otherwise, you will not be pre-qualified.
It’s also helpful to provide the story behind your need for the building you are looking to lease or purchase. The more a lender knows about your situation, the better they can service your need.
So, you’ve met the parameters, and you’ve answered all the necessary questions. You might be wondering, “What’s next?” Here’s the chronological order of the transaction from the quote to when the deal is funded:
- Your lender – whether it’s Pacific Mobile Structures or Raymond Leasing – will generate a quote, and you will have an idea of what you might be able to borrow based on the information you provided.
- You award Pacific Mobile Structures with the deal for the lease or purchase of a modular building.
- Pacific Mobile Structures will reach out to the lender, if it’s not them, and receive credit approval.
- Pacific Mobile Structures will manufacture and deliver the building to be accepted by you.
- If Raymond Leasing is involved as the third-party lender, Pacific Mobile will sell the building to that entity and then Raymond will collect monthly payments directly from you, the customer. If Pacific Mobile is the lender, then Pacific would be collecting the payments directly.
Are you pre-qualified?
Getting pre-qualified is a great way to streamline the approval process for your loan and ultimately obtain your modular building. An operating lease also has many advantages beyond being a cost-effective option that maintains flexibility in your cash flow. It offers 100% financing and the ability to preserve capital and keep your acquisition off the balance sheet.
With an operating lease, you can also hedge against the cost of inflation with flexible payment options and fixed rates and payments while avoiding equipment obsolescence.
What do you think? At first glance, are you pre-qualified? If you answered yes, get in touch with us today to further explore your financing options and be on your way to leasing or purchasing a modular building.