Where is HARMAN Finance available?
HARMAN Finance is available in the United States and throughout the world. Please check the contact section of our homepage for country coverage www.harmanfinance.com/.
What type of products can be financed under HARMAN Finance?
All Harman Pro products, as well as most services and noncompetitive products such as cabling, installation and other gear.
Who is Quail Financial Solutions, I thought I was applying to HARMAN Finance?
Quail Financial Solutions was chosen by Harman as its finance administrator to deliver the best financial resources available. With over 30 years experience, Quail is able to deliver structured, custom solutions through its extensive knowledge of HARMAN products, diversified portfolio of lenders, streamlined and robust financing options and exemplary personal service.
What terms are available?
Terms are generally 1 to 6 years but can vary depending on country. Please consult your HARMAN Finance representative.
What is the typical timeframe?
- The approval process is typically a couple of business days.
- The entire process (from application to funding) has multiple steps involved. In addition to the typical approval timeframe of 2 business days, the other steps are:
- Lender documentation – Typically 3 business days, since sometimes certain documents may need to be notarized (please note that Lender documents cannot be digitally signed)
- PO issued to the Supplier – Typically within 1 business day of receipt of original signed Lender documents along with, if applicable, advanced payments and/or documentation fees
- Equipment delivery – Dependent on product(s) availability (must consult with the Supplier)
What information is required to begin the process?
One-Page Application – The one-page application must be completed and submitted along with copies of the preceding three months of business bank statements. If a sales quotation is available, that should be provided as well. If not, the desired finance amount should be listed on the application.
Full Financial Package – A full Financial Package includes tax returns, financial statements, balance sheets, and/or debt schedule. This is often not required and is typically requested when applying for a large finance amount or if the Client does not have enough of a credit footprint on their business profile.
What if the Client has an extension on their taxes?
For those who have filed for an extension on their taxes, a copy of the extension filing and company internal financials during that same time period are required in place of the tax returns.
When does the Supplier receive payment?
Once all equipment has been delivered and the Supplier has provided their final Invoice for payment, the Client will sign the Delivery & Acceptance form. Upon receipt of this form, payment is issued via wire or overnight check.
What if the Supplier requires a deposit?
Deposits paid to the Supplier require Lender approval. If approved, a deposit will be paid prior to equipment delivery. Approvals for deposits are subject to the Lender’s discretion. The Lender may require additional information from the Supplier and/or Client when reviewing this request. (Also see 4a in FAQs)
Does QUAIL place the Client’s sales order with the Supplier?
The Lender PO issued and provided to the Supplier who then processes the Client’s sales order. The Lender PO is based on the agreed upon Equipment Sales Quotation the Client provided.
Can the Client make any changes to the order after a Lender PO has been issued?
Yes, provided the transaction hasn’t yet funded and the Supplier agrees. If a change to the existing order is needed, an amendment reflecting the change is generated for the Client’s approval and signature. Upon receipt of the signed amendment, a revised Lender PO is generated and provided to the Supplier.
When does the contract commence?
The contract typically commences after the Client signs the Delivery & Acceptance form and payment is issued to the Supplier.
Prefunding: Prefunding is when a deposit is required prior to equipment deliveries. The contract is typically started when the prefunding deposit is issued. In some instances, the Client will just accrue finance charges until the Client signs the Delivery & Acceptance and then lender starts the contract.
Interim Rent: Most lenders have set days to collect monthly payments such as the 5th, 15th and the 25th. If the Delivery & Acceptance falls on the 9th for example and our Lender disburses Supplier payment on that day, the Client will be charged interim rent from the 9th thru to the 15th which is the next billing day.
What is a Commitment Fee?
This is just another word for a Good Faith Deposit. Once we have outlined the exact proposed terms, we may need a commitment that the customer accepts prior to final approval and documentation. This is not a separate fee. It is applied to the required advance payments due when documents are signed.
Are Advanced Payments required?
Typically, the first and last month of a contract are required along with the signed documents. However, it may be possible to reduce this to one payment or even none, depending on the credit strength of the borrower.
Are there any pre-payment penalties?
No, the term pre-payment penalty applies to amortized loans. With Equipment Finance Agreements and Lease Agreements, the contracts are designed to go to term. Monthly payments do not show a breakdown between the principle and interest. You can always payoff the contract early but typically the lenders give little or no additional interest breaks. Generally, it does not make good business sense to buyout your contract early.
What is a Corp-Only Approval?
Corp Only Approval means that the Credit Facility is provided to the company based on its own Credit footprint and financial strength without any personal guarantees.
Will a Personal Guaranty affect my personal credit?
No. Although sometimes Personal Guarantees are required, the debt is an obligation of the business. The corresponding credit is reported by the business credit reporting services to the company credit record, not to consumer Credit Reports.
What are the tax implications?
Consult your CPA. Generally, Lease Purchase Agreements and Equipment Finance Agreements are treated by as Capital Equipment Acquisitions allowing for the expense of depreciation and interest. Operating leases and Bundled Services agreements may be partly or completely deducted as an operating expense depending on structure. This is a decision the Client needs to make with their CPA.
If I’ve already been approved and started my contract, can I apply for additional financing?
Yes, each contract is written as a stand alone contract.
Will this be a coterminous contract?
It can be should the Client want it drawn up that way.
Are you only able to finance the equipment, or can you also include sales tax, shipping, installation costs, etc.?
Yes we can include all of the above.
Can I receive any reimbursements for payments I’ve already paid to the supplier, such as a deposit?
Yes, we can reimburse you for deposits made to your Supplier, we would require proof of payment verification.
What if I paid with a credit card?
This is also possible if you can show you have paid OFF the Credit card balance. However, reimbursements are not a standard practice and require approval in advance. Approvals for reimbursements are subject to Credit’s discretion. Credit may request additional information from the Client.