Common questions about longarm machine financing
Purchasing a longarm quilting machine can be a daunting experience. After all – it’s a big investment.
APQS partners with Red Thread Financial Group to provide you with commercial finance options for your longarm quilting machine. The team at Red Thread has been serving the quilting industry for many years and many of them are quilters themselves. As a result, they intrinsically understand the passion and dedication involved with quilting.
We asked Carrie Radloff, business development manager at Red Thread, to share answers to some of the most common questions they receive about financing a longarm quilting machine. We hope this will help you better understand the process and feel more confident in your financing choices.
Do I need to have an established business to apply for your program?
Although Red Thread’s program is a commercial finance and lease program we do not require a business to be established before applying for our program.
What are your interest rates?
Our interest rates will start around 8 percent and go up from there based on a combination of personal credit strength, business credit strength (if applicable), debt to income ratio, amount financed and term. To get a better idea of what payments would be call Red Thread at 877-237-7287 and we will walk through the specifics of your situation and present a more accurate estimate.
How long will you finance for?
Finance and lease options are available from 24 months to 60 months.
Can I pay off early?
Yes. With both our finance and lease programs you can buy out early without penalty. Most of our early buyouts will give discounts to save on future interest but some of the lease programs will charge the remaining stream of payments. Red Thread will do its best to approve the structure requested by the customer.
How much money do you need down/upfront?
Our typical approvals will ask for 1-2 payments upfront in advance. Some lease options are available with zero payments upfront and in some cases more than 2 payments may be required upfront. In some cases, lower payment/interest rates are available with 10-20 percent down. A nominal processing fee is also charged.
What do you use as collateral?
Only the machine being financed is used as collateral, whereas banks may file a blanket lien on all of your business and/or personal assets.
What is the maximum amount you will finance?
Red Thread has no maximum finance amount. The minimum finance amount is $5,000.
What credit score do I need to have?
No specific credit score is required. Red Thread can work with most credit types. Most customers who qualify on the finance agreement program will have a 700 or higher credit score but there can be exceptions. The lease program offers more flexibility on credit scores.
Will my spouse have to sign?
Possibly, as each credit and ownership situation is different. If the spouse is involved with the business, is an owner or officer in the business or is using the equipment we will require the spouse to sign.
If I finance a machine through the lease program, do I have to return it at the end?
No! Our lease programs are written with a $1 buyout at the end or a similar structure so you will own the machine at the end without having a large buyout.
Can I finance a Quilt Path/computerized system?
Yes! We will use the machine the Quilt Path is going on as additional collateral.
For more information about Red Thread, call 877-237-7287.