Our Ethics & Mission Statement
Our reputation is our most important asset, and our specialized knowledge of the sophisticated business market and focus on ethics has spurred our tremendous growth.
Trust Capital was established with the mission to provide competitive financing for businesses. Trust Capital is a national finance company dedicated to helping manufacturers, vendors, and dealers be more successful and keep their customers.
We strive to provide our customers with industry leading finance programs, delivered the only way we know how, ethically. Unlike many lenders, we do not engage in the unethical leasing practices highlighted below.
If ever there was an aspect of equipment leasing which juxtaposed the legal with the unethical, the "evergreen clause" would be that area. An evergreen clause, or evergreen lease as the word implies, signifies a contract that goes on forever. In actuality, it can end, but only after the lessee sends, within a specified time period, a letter stating his intent to return or purchase the underlying equipment.
In practice, the procedure is deliberately made cumbersome by the Lessor. Hence, the lessee unwittingly pays in excess of the total price to which the parties agreed. With Trust Capital, the majority of our lease and finance agreements have a $1.00 buyout, effectively nullifying any chance of being “evergreened”.
Buy-outs of Fair Market Value not to exceed 10% fixed and a contract without any end position will have evergreen verbiage. These range from monthly automatic renewals going month to month or some automatically renew for 12 months. As a result the customer doesn't recall 5 years prior what they signed. They keep getting invoices for the same payment amount and their A/P keeps sending the payments in. Months later they sometimes catch it, but it's too late. They still have to give the leasing company 90 days notice. So now they have to pay 3 more payments then buy the equipment for the designated amount. Sound fair?
Let’s say a piece of equipment is to be delivered on the 5th of March. The lease/finance contract defines the "delivery date" the "acceptance date" and the "commencement date". All of which is very confusing. The contract states the lease payment will be due on the date specified by the Lessor in the month following the commencement day. So the finance company bills for the "interim period" which is from March 5 to March 30, a total of 25 days.
On the surface, this sounds great, you only have to pay for a partial month. However, the lease doesn't actually start until April 1st. At the end of the lease term they bill you again for the month of March. They get almost a full extra payment, just for asking. All of this is perfectly legal as it is "stated" in your contract.
When you finance or lease a piece of equipment the lender will file a UCC Statement with the corresponding state where the lessee is incorporated. This insures ownership - the lender has a lien on that specific equipment. When the equipment is paid off, the finance company removes the UCC filing and sends the "release" to the customer and they take formal ownership of that equipment.
Unfortunately, some banks and finance companies will file what is called a Blanket Lien. This is a lien on everything that is located in the business or practice including accounts receivable!
Essentially the bank or finance company owns everything in that practice whether the physician paid cash or owned it prior! In many cases, a blanket lien may be filed on the first piece of equipment financed, no matter the amount. Therefore, if an owner or physician ever wanted to sell a piece of equipment, he cannot get clear title due to the blanket lien. Furthermore, the bank or finance company technically owns everything in the practice, because again, it’s in the contract.
At Trust Capital, we will never file a blanket lien, only a lien against the specific piece of equipment being leased.
All leased equipment requires insurance. A company that finances leased equipment has ownership during the lease, but doesn't actually have possession. If something happens to the equipment, the leasing company must make sure that all the payments will continue to be made.
Most businesses carry adequate insurance and their policy can be amended to list the leasing company as "additional insured and loss payee" on the specific piece of leased equipment. Some leasing companies do not take the time to do this. Instead, they "provide" insurance on the leased equipment through their chosen company and simply bill for the insurance coverage.
You have no control over the cost, no ability to make changes, and will be paying twice to insure the same piece of equipment. An insurance charge will appear on your monthly lease payment…and good luck trying to remove it!
It is Trust Capital's general policy to allow a lessee to prepay the lease rental payments before the expiration of the lease term assuming the lessee is and has been faithfully and promptly fulfilling his monthly payment obligation to Trust Capital and it assigns.
Our application process is easy. Simply fill out our quick, online application and start the process of securing financing for your start up practice. Our knowledgeable finance experts are here to assist you in obtaining a start up financing loan.
If you have any questions, we invite you to contact us