Pawnee Leasing Corporation Reviews - Financial Lender Pros & Cons

Overview

Pawnee Leasing Corporation is a small-ticket equipment leasing company that specializes in leases for equipment financing. Pawnee was founded as a niche firm that provided small-ticket lease products to start-up companies and other firms that were well established but had credit difficulty that prevented them from qualifying with traditional lenders. In 2006, Pawnee Leasing Corporation was purchased by Chesswood Group Limited, a publicly-held (TSX:CHW), specialty finance company based in Toronto, Canada. 

Services Offered 

Equipment financing and leasing

Industries Served

• Medical
• Software
• B and C customers who does not operate under the prohibited industries

Prohibited Industries 

Although Pawnee works with many less traditional businesses, there are many industries that the company does not work with, listed below. 

• Accountant/CPA
• Any home-based business
• Audio/Video
• Carpet cleaning
• Cleaning/Restoration
• Dry Cleaning
• Embroidery
• Fitness/Gyms
• Forestry/Lumber/Wood
• Garment/Apparel
• Janitorial, laundry
• Mortgage broker
• Printing
• Publishing
• Real estate agent/Broker
• Tattoo/Body piercing
• Transportation/Trucking
• Adult Entertainment
• Agriculture
• Alternative/Discretionary medical- businesses performing invasive and non-invasive, non-essential medical procedures 
• Attorneys
• Breweries
• Business opportunities
• CBD & hemp products
• Chiropractors
• Cinemas/Theaters
• Day trading
• Event Planning/Party rental
• Family recreation & entertainment
• Franchise with less than 50 locations
• Gaming
• Hazardous materials
• Hotels
• Motels
• Resorts
• Hospitality, and other travel related businesses
• Inter-/Intrastate transportation Requiring apportioned plates
• Long haul trucking/Transportation - class 7-8, marijuana or any drug-related businesses 
• Med spas/Day spas/Massage/Tanning
• Medical (not owned by medically licensed professionals)
• Oil and gas production and businesses serving this industry
• Paintball
• Public entertainment/Concert venues
• Public transportation
• Restaurant, food & drink service (franchise/independent)
• Retail stores (excluding grocery and pharmacy convenient stores)
• Stage lighting & sound for public venues
• Vaping stores, vending (third-party location)
• Agricultural
• Alternative/Non-essential medical
• ATMs (routes)
• Aqua massage
• Automobiles
• Automate dialers
• Billboards
• Bitcoin mining equipment
• Blinds cleaning
• Blood analysis equipment
• Copiers
• Energy management
• Fencing
• Gaming machines
• Holistic medical equipment
• Hydroponic
• Inkjet refill
• Internet gambling
• Inventory/Consumables
• Kiosks (third-party location) LED lighting for startup
• LED signs on vehicles
• Maxxforce engines 2007-2013
• New Age medical equipment
• Oxygen bar
• Public internet access terminals
• Recreational terminals
• Solar panels
• Storage tanks
• Titled equipment
• Tobacco tolling machines 

Programs & Benefits

• Competitive "A" pricing 6%, 7.5%, 8%, 10.5% App-Only to $250,000/$350,000 Hard Asset
• Risk based "B" pricing from 12% to 24% App-Only to $75,000/$150,000 Hard Asset
• Challenged credits considered under "C" pricing App-Only to $35,000
• ”Start-Up" businesses considered App-Only to $50,000

Borrower Qualifications

Pawnee Leasing Corporation is open to working with lenders who may not qualify for other loans, including businesses with B and C credit ratings in industries that are not on their prohibited list.  However, they do require proof that the businesses applying for financing have been in business for at least two years. Proof of home ownership and/or a down payment may also be required. 

Terms & Fees

Amount

Pawnee offers small ticket equipment financing with funding amounts ranging from $5,000 to $350,000.

Term length

This lender offers medium-term lengths of 22 to 60 months. 

Interest rate

Borrowers accessing financing with Pawnee will pay interest rates starting at 14%.

Down payment

Down payments with Pawnee range from 0- 15% of the value of the item. 

Buyout agreement

Pawnee offers a variety of buyout options including a $1 buyout, 10% buyout, FMV, and term residual.

Additional costs

Additional costs for this lender include a $150 doc fee, $250 title fee, $350 site inspection fee, and a $250 processing fee.

Effective APR

Terms and Fees Summary/Considerations

There is very little information about terms and fees on the company website, and there are numerous complaints from customers in reviews and to the Better Business Bureau claiming that the company was not transparent with regards to terms and fees. 

Application Process 

To apply for a loan with Pawnee, borrowers are required to provide the following documentation:

• A signed credit application
• Equipment invoice (70% ownership) 
• Bank statements for 3 months (per discretion) 
• Proof of 2 years’ time in business

Other common conditional approval conditions with this lender may include proof of:

• Invoice/spec review
• Ownership
• Home ownership
• Location
• Active SOS
• Active Safer/USDOT
• Liens/judgement satisfaction and vendor approval

Customer Service & Technical Support

Customers can reach Pawnee Leasing Corporation through the contact form on their website, or at the below points of contact, including phone support. 

Phone: 1.800.864.4266Fax: 970.482.26663801 Automation WaySuite 207Fort Collins, Colorado 80525

User Reviews

Negative Reviews & Complaints

This company has low ratings on the Better Business Bureau and Google. Dissatisfied customers complain of lack of transparency, hidden fees, extensive insurance requirements, no cancellation options, and bad customer service. 

Positive Reviews & Testimonials

Positive reviewers appreciated the detailed explanations and support the professional staff provided. 

Final Verdict

This lender offers loans of up to $250,000 to small companies that do not qualify for other lenders, excluding companies in prohibited industries. They offer significant flexibility, however, since the terms are specific to each agreement, there are complaints from customers who were not aware of critical components before entering into the agreement, such as high fees and interest rates. Other customers, who contacted the company and asked for clarifications before entering into an agreement, were satisfied with the answers that they received. Therefore, Pawnee Leasing Corporation can be a good option for businesses that do not qualify for standard lending, but borrowers should make sure to carefully review all terms before entering into an agreement with the company.