Where is HARMAN Finance available? HARMAN Finance is available in the United States and other regions. Please check our website for country coverage: pro.harman.com/finance. Simply click the more information link to find out more.
What type of products can be financed under HARMAN Finance? All HARMAN Professional products, as well as most services and noncompetitive products such as cabling, installation, and others.
Who is Quail Financial Solutions, I thought I was applying to HARMAN Finance? Quail Financial Solutions was the finance administrator chosen by HARMAN to deliver the best financial resources available. With over 30 years experience, Quail delivers 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? Typical term lengths are 1 to 5 years but can vary depending on your country. Please consult your HARMAN Finance representative.
What is the typical timeframe?
The approval process typically takes two business days.
The entire process (from application to funding) however, involves multiple steps:
Lender documentation: typically takes three business days, as certain documents may require notarization (please note that Lender documents cannot be digitally signed)
PO issued to the supplier: typically occurs within one business day of receipt of original signed Lender documents along with advanced payments and/or documentation fees, if applicable.
Equipment delivery: varies based on product(s) availability (please 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. Please provide a sales quotation if available. If not, please list the desired finance amount on the application.
Full Financial Package: a full Financial Package including tax returns, financial statements, balance sheets, and debt schedule (if applicable), is often not required, but may be requested when applying for a large finance amount or when the Client has an insufficient 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, we require a copy of the extension filing and company internal financials for that same period 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 will be 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 before 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.
Does QUAIL place the Client’s sales order with the Supplier? The Lender’s PO is issued and provided to the Supplier who then processes the Client’s sales order. The Lender PO is based on the agreed Equipment Sales Quotation provided by the Client.
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 will be generated for the Client’s approval and signature. Upon receipt of the signed amendment, a revised Lender PO will then be generated and provided to the Supplier.
When does the contract commence? The contract typically commences after the Client signs the Delivery & Acceptance form and issues payment to the Supplier.
Prefunding Prefunding is when a deposit is required prior to equipment deliveries. The contract typically starts when the prefunding deposit is issued. In some instances, the Client will just accrue finance charges until the Client signs the Delivery & Acceptance form 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 also known as a Good Faith Deposit. Once we have outlined the exact proposed terms, we may need a commitment from the customer prior to final approval and documentation. Please note: this is not a separate fee, it is applied to the required advance payments that are 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 pay off the contract early, but typically lenders give little or no additional interest breaks. In most cases, 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 Credit footprint and financial strength without any personal guarantees.
Will a Personal Guaranty affect my personal credit? No. Although Personal Guarantees are sometimes required, the debt is a business obligation. The corresponding credit is reported by business credit reporting services to the company credit record, not to consumer credit reports.
What are the tax implications? Consult your CPA. Lease Purchase Agreements and Equipment Finance Agreements are generally treated 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. That said, this is a determination 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? The contract can be coterminous should the Client desire it 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, however 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.
