I became aware of this firm while trying to lease equipment for my new business. Although I was not getting anywhere with other companies, Union Capital told me that they had "pre-qualified" me for $75,000. This was great news, since I was only seeking about $28,000. I did make a mental note that they seemed to be difficult to make direct contact with; I would always have to leave a message... Someone from the firm would get back to me, usually the following day. Didn't make me feel very comfortable.
After a week of talking, and faxes, UC finally sent me a proposal via FAX, as opposed to the requested email. The proposal was very vague. It offered to seek financing for the equipment (no guarantee of actual funding,) when I sent them a check for $2,415.15 (first & last lease payments, and a $750 fee.) What alarmed me was that the proposal was worded such that if they failed to fund my equipment, they were entitled contractually to retain up to 5% of the requested lease amount ($33,500.00,)... in other words, they could keep the first, last, and filing fee (my whole $2,415.15!).
There were also vagueries concerning insurance requirements, what constituted adverse credit, so on, so forth. I mulled over this proposal for an hour or so, then got on the net to do some due diligence. I was fortunate enough to come across a website called Leasing News, which carried a very informative complaint bulletin board. My concerns regarding Union Capital were justified.
If you are thinking of doing business with UC, go to (URL removed by usacomplaints.com)... I believe that you'll find all you need to convince yourself against risking your capital with these people. Their scam appears to be getting the potential client (usually a start-up business,) to send them a check, thinking that UC is operating in good faith, when in fact, they aren't.
The only capital that UC is interested in is your initial "commitment fee." If you sign the proposal, and send them a check, they don't have to offer any proof of trying to fund you, they just tell you that for some reason, it won't work, and that they're keeping your money. Sick people.By the way, kudos to Kit at Leasing News, as well as to Kathy at Precision Concrete. Both very nice people who worked together against UC.
Jeff
melbourne, Florida
U.S.A.
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