Ep 71. Money Talks: Financing Your Business Growth with JoAnn from Northern Atlantic

⏱️ 57:17 🎤 Jason Lee, Jordan Upcavage, JoAnn

AUDIO EPISODE

Ep 71. Money Talks: Financing Your Business Growth with JoAnn from Northern Atlantic

0:00

Chapters

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0:00

Introduction to JoAnn

Jason and Jordan introduce their guest, JoAnn from Northern Atlantic Financial, highlighting her expertise in equipment financing for the green industry.
3:49

Northern Atlantic Background

JoAnn shares her 25 years of experience in the industry and how Northern Atlantic Financial specializes in landscape and tree care equipment financing.
8:21

Financing Equipment Explained

JoAnn breaks down the process of obtaining equipment financing, covering credit applications, business age requirements, and the role of PayNet scores.
15:53

Business Credit vs. Personal Credit

The discussion delves into the differences between business and personal credit, explaining how financing through Northern Atlantic affects a business's PayNet score and not personal credit.
23:11

Types of Equipment Financed

JoAnn outlines the diverse range of equipment Northern Atlantic finances, from small mowers to large cranes, and how risk assessment influences loan terms.
29:43

Interest Rates and Terms

The hosts and JoAnn discuss typical interest rates for new and used equipment, the impact of credit history, and the flexibility of loan terms.
34:03

Repossession Process

JoAnn provides a candid look at the repossession process, emphasizing the importance of communication and the consequences of defaulting on a loan.
39:08

Avoiding Blanket Liens

JoAnn explains the risks of blanket liens from local banks and why Northern Atlantic avoids them, focusing only on the specific equipment financed.
47:21

Tips for Building Business Credit

JoAnn offers practical advice for new business owners on how to establish and build strong business credit, including responsible use of credit cards and transparent financial reporting.
50:04

Contacting Northern Atlantic

JoAnn shares her contact information and invites listeners to reach out for their equipment financing needs.

Speakers

Jason Lee

Host

Jordan Upcavage

Host

JoAnn

Northern Atlantic Financial

Key Takeaways

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Most equipment financing deals from Northern Atlantic are 60-month (5-year) terms, with 100% financing typically available, including sales tax, without a down payment.

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For businesses with at least three years of operation, a one-page credit application can secure up to $250,000 in financing, primarily relying on business credit (PayNet) rather than personal credit.

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Business credit is distinct from personal credit (FICO score); PayNet scores range from 0-80 and are specific to business dealings, showing payment history and loan details.

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New equipment generally qualifies for lower interest rates (e.g., 7.9%) compared to used equipment (e.g., 8.9%) due to lower risk, but rates are also influenced by credit history and loan term.

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Financing agreements with Northern Atlantic Financial typically have no prepayment penalties, allowing businesses to pay off loans early if they have available cash.

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Be aware of blanket liens from traditional banks, which can put all your business assets at risk; specialized lenders like Northern Atlantic typically only place a lien on the specific equipment being financed.

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For new businesses, building credit involves responsible use of personal credit cards (paying off balances monthly) and transparent financial reporting to show growth and income through bank accounts.

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