Financial Pacific Leasing, Inc. is a subsidiary of Umpqua Bank, of Portland, Oregon. The company is a direct provider of small-ticket commercial equipment leases that has been partnering with third party originators and lessors in the US for over forty years.
Equipment financing and leasing
FinPac lends to a variety of industries (excluding those on the prohibited industries list) that include, but are not limited to:
FinPac considers applications for equipment finance up to $150,000 in approved industries based on various criteria. The company’s commercial division provides financing of over $150,000 in approved industries to borrowers who provide sufficient financial documentation. All approvals are subject to review by the FinPac’s underwriting department.
FinPac offers small ticket equipment financing with funding amounts ranging from $5-150k. Their commercial division provides loans for up to $500k to borrowers who can provide the required financial documentation.
Term lengths for this lender start at 36 months and extend up to 60 months.
Interest rates at FinPac start at 7% and can reach up to 40%, depending on the size of the loan, down payment, borrower credit rating, and other factors.
Down payments range from zero to 15% of the value of the item.
FinPac offers customers several buyout options. One option is the $1 buyout, which is essentially the option to finance the entire cost of the equipment with only a $1 residual value. In other words, when the lease payments are completed, customers can purchase the equipment for $1. During the lease period, FinPac registers the equipment and pays the taxes which are billed to the customer. In addition, FinPac offers a 10% buyout option, which is basically the same as the $1 buyout, except that the borrower pays 10% of the value of the leased item at the end of the lease term, and therefore the monthly payments during the leasing period are lower.
FinPac also offers fair market value (FMV) buyout options, meaning that at the end of the lease period, the borrower has the option to purchase the equipment at its market value, if he/she so chooses, or to return the equipment.
This lender charges fees for a variety of services including a $200 vehicle insurance fee, $125 (below $50k) $175 (above $50K), and a $150 title transfer fee. Fees are subject to change and delinquent accounts will be assessed additional fees. FinPac also charges the fees detailed below.
Loans assessed by customer service
Customers may be charged additional fees including, but not limited to: assumptions ($85.00/ $100.00), changes to the contract ($50.00/ $85.00), overnight fees ($20.00), payments over the phone ($10.00), non-sufficient funds ($35.00), and wire transfer ($25.00).
Loans assessed by portfolio service
Customers may be charged additional fees including, but not limited to: addendum ($50.00), credit bureau ($5.00), equipment inspections ($100.00 but may vary), third party field calls ($100.00 but may vary), forbearance ($100.00), interpreter service ($25.00 but may vary), overnight fee ($20.00), payments over the phone ($10.00), payment history ($25.00 when second request in 12 months), personal/property profile ($15.00), repo cancel ($100.00), repo assign admin fee ($50.00), and six-month extensions (10% of total sum of payments extended).
To apply for a loan with FinPac, borrowers are required to submit a signed credit application, SIC code (nature of the business), equipment invoice, and a PG for anyone with more than 15% ownership. Additional common conditional approval conditions include invoice/spec review, proof of time in business (TIB), proof of ownership, proof of location lease, proof of active SOS, proof of active safer/USDOT, proof of fleet, and vendor approval.
Terms and Fees Summary
Other than the list of fees on their website, FinPac does not provide any information on their terms.
Sales & Advertising Transparency
FinPac does not provide any information on this topic on their website.
Customer Service and Technical Support
Customers can reach FinPac through the contact form on their website, or on the toll-free customer service line at 1-800-447-7107 during business hours.
Negative Reviews & Complaints
This lender has numerous negative reviews on Yelp (average of one star), primarily related to aggressive collection methods, even in extreme circumstances, such as after the borrower has suffered a significant personal loss. Other dissatisfied customers complain about a lack of transparency with regards to fees, unauthorized charges, poor customer service, and a general lack of transparency.
Positive Reviews & Testimonials
A small number of customers mentioned helpful customer service reps and other helpful staff members.
FinPac offers options for a variety of types of borrowers, including those with lower credit ratings, making it an attractive option for borrowers who do not have access to other lenders. However, borrowers should review the contract carefully and make sure that they will be able to make payments on time, as the poor user reviews indicate that the company is not accommodating to changes and/or delinquencies.