Posts Tagged ‘Money’
The leasing revenue & COGS model is very different than a product or services business. To a leasing company, revenue is the periodic interest income generated each month over the term of the lease, let’s say at a rate of 15%. The leasing company borrows money at say 8% to buy the equipment and match-fund the equipment lease, let’s say through a term loan (recorded on the balance sheet & amortized to the P&L to match the revenue stream). This is not like revenue & COGS on a product company P&L. Further, the lessee may be required to make a down payment and say first & last month rents, reducing the funding requirement and accelerating the cash flow back to the leasing company & effectively increasing the profitability to the leasing company. Last payment must also be deferred on the balance sheet. From a tax perspective the leasing company also depreciates the equipment asset.
My brother sold his business including the equipment while he was still paying on the lease for the equipment. He continued paying on the lease when he hit hard times. Now he cannot make the payments and the equipment lease company is trying collect by calling him and his wife day and night and being really nasty. He doesn’t have the money right now. What are the consequences here? There is no equipment for the compnay to repossess. They probably could not recover cost of repossessing it and selling it to cover that cost and what is owed. Will they pursue that? Can my bro be criminally charged?
Here’s the deal. I have a small equipment lease with a company in NY. (Credit card reader.) Sometimes my payment is late, up to a week sometimes. a bit more. One day late and they start calling me. Evey hour. Then after a few days, every half hour. I have received over ten calls in one day before I have to shut it off. (Boss gets upset.) This is at work on my cell phone which, due to family needs NEEDS to be left on. They do not stop and tell me they will not stop until they receive a payment. Once they receive it, unless I tell them they got it and they look it up, they continue to call. Is there a law that I can quote to stop them.? They always get their money. Just a bit late. And there is nothing I can do to make it better. Is there anyone I can report them to? Or ask for help?
Sorry a bit of a complex one! I owe about 7k and am with a debt management company paying 150 a month living on a very low wage and struggling. found out I have signed for nearly 200k of leasing equipment from a my employer before they went bust (which I didnt I signed as a witness with CID fraud at the moment) but the
leasing companies are still trying to get the money and will continue to try until they get it am in court on a regular basis fighting my case saying I didn tnot sign etcand so far some of them have put them on hold until cid have finishedbut the others are trying everything. My house is about 130k in 2006 but have a mortgage for 95k and 2 secured loans totalling 17k and a 7k fine if I leave my mortgage early. I have an 11yr old child and my partner has just moved in but is not on mortgage I have a car worth about 3k. Getting tired of fighting and need to be able to know if I am going to keep my house should I just file £350 and be done with it?Please someone help me finish this nightmare!