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We take a consultative approach to developing a program that works for you, the equipment vendor, and your customer. Some of our Finance Solutions include:
- Pre-funding. No need for you to wait until the end of a lengthy equipment installation to get your money. We can create a program where your equipment is pre-funded with an order guarantee.
- Fax Funding. We can fund from a faxed agreement and invoice to provide quick and proactive funding which also allows you to avoid overnight mal expenses. Simply fax agreement, then follow up with originals via regular mail.
- Skip/Seasonal Programs. Skip or seasonal payments help close the sale. This allows your customer to weight their lease payments towards their busiest months and skip payments during their slow periods.
- 90 Days Same as Cash. The customer has 90 days to pay for the equipment or choose a lease option. Monthly payments are made during the 90 days. If the customer pays off in cash, the payments are applied to the balance. Or, the payments will be applied to a lease unless customer notifies us. We then extend you the benefit of taking a 5% discount off the invoice amount for offering this program.
- Six Months Deferred. This allows your customer to purchase your equipment and to generate revenue before a payment is due, up to six months deferred. This allows for flexible budgeting.
- Upgrade Lease. Upgrading is an easy way for your customers to acquire your latest equipment and avoid obsolescence and for you to increase your sales through repeat business. Halfway through the lease, add equipment, up to 40% of the original cost, and your customer's payment remains the same. It's easy to sell a lease extension with the same payment, as opposed to selling a new agreement.
- Subsidized Interest Programs. Subsidized programs represent the discounted rate you want to advertise which comes off the invoice (funded amount). This allows you to run promotions when introducing a product, clearing out stock, and increasing market share through short-term specials.
Types of leases and Lease Options
Finance Lease
A finance lease is a full-payout noncancelable agreement. You are responsible for maintenance, taxes and insurance. The benefit of this lease type is the advantage of IRS Section 179 and expense up to the amount allowed for the year the equipment is installed. You may depreciate any excess on the depreciation schedule for that particular asset.
$1 Buyout (Lease to Own)
This lease allows
the customer to own the equipment for $1 at the end of the lease. This lease will have the
highest monthly payment. The following options are available at the end of the lease:
- Purchase the equipment for $1
- Upgrade the lease
This option is good for equipment with a long useful life. Also called a capital or finance lease and may be depreciated on the balance sheet.*
10% Purchase Upon Termination (PUT)
Under this lease type, the customer must purchase the equipment at the end of the
lease term at 10% of the original equipment cost.
- Purchase the equipment for 10% of the original cost
- Upgrade or renew the lease
Tax Lease/True Lease
A tax lease or true lease are leases for which the lessor retains ownership and you as the lessee may be allowed to claim the entire amount of the monthly investment as a tax deduction. Many rental contracts qualify as a true lease.
Fair Market Value Lease (FMV)
This lease provides the lowest monthly payment. When the term is completed, you can either purchase the equipment
for the fair market value, or return the equipment to the finance company. This lease offers
the following end of lease options:
- Purchase the equipment for the fair market value
- Return the equipment
- Upgrade or renew the lease
This is usually a good option for companies that upgrade to new equipment every few years. Also called a Tax or True lease because it usually qualifies as a tax deductible business expense.*
10% Option
The 10% Option guarantees a 10% residual on the equipment, however, the customer has the
OPTION of purchasing the equipment for 10%. This lease offers the following end of lease options:
- Purchase the equipment for 10% of the original cost
- Return the equipment
- Upgrade or renew the lease
In most cases, the monthly payment can be written off as a business expense.*
*Consult your tax advisor for specific details.
Contact Us Today
To learn more about our Solutions for Growth and our lease options, please call us at: 800-225-3428.
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