Saturday, June 1, 2024

Vendor Leasing Programs

Capital equipment lease financing is big business. Over the past decade, the average volume of leased equipment has increased six-fold and is now the fastest growing mode of equipment financing.

With a fluctuating economy, new technology, and competition changing the way companies compete for business, a well-developed, customized vendor leasing plan can make the difference between closing a contract or losing the opportunity.

At Capital Resources, we assist equipment sales representatives in converting prospects into customers. Our sales based financing solutions are tailored to meet an equipment resellers business growth strategy. In addition to a complete line of standard programs, Capital Resources can offer customized finance products such as:

· Bundled financing for equipment, installation, and training
· Graduated payment plans
· Deferred and skipped payment plans
· Conversion and upgrade leases
· Progress payment plans to cover vendor working capital needs until contract completions.

Further, in addition to your commercial clients, unlike most other lessors, Capital Resources can service the needs of your municipal clients.

We’ll develop customized plans that will help your company increase sales and market penetration, and our market-specific leasing strategies will help you differentiate your business and products.

Our customer support team’s sale-oriented focus helps your company increase sales by:

· Creating one-on-one partnerships with your sales representatives.
· Offering programs that respond to changes in markets dynamics.
· Exchanging ideas on what’s working in the marketplace.

Leasing Programs

Leasing equipment is convenient, flexible and financially advantageous for your customers. With different payment structures and end of term options to choose from, Capital Resources can structure the right lease to fit your customers’ needs.

With Each Lease Product, Your Prospects and Clients Receive:
· Competitive access to capital to expand your marketing capabilities.
· A customer account team that understands the unique needs of your
  business environment.
· Flexible payment terms and end of lease options.
· Low monthly payments.
· Potential tax benefits.

$1 Purchase Option Lease
Similar to a loan, with this lease structure the customer owns the equipment, makes affordable monthly payments, and enjoys tax benefits such as depreciation and interest expense deductions. At the end of the lease term, equipment is purchased for $1 and no further obligation exists.

$1 Benefits:
· Fixed monthly payments.
· Customer retains depreciation benefit.
· Ownership.

Fair Market Value (FMV) Lease
This lease option is an excellent option for those customers who expect the value of their equipment to decrease quickly, or will want to upgrade their equipment during or at the end of the lease. With a FMV lease, customers have the option at the end of the lease term to either return the equipment or purchase it for its Fair Market Value. In addition, since it is a True Operating Lease, 100% of the lease payments can usually be expensed.

FMV Benefits:
· Low monthly payments.
· Hedge against obsolescence.
· Upgrade flexibility.
· Tax-deductible payments.

Customized Leases
A variety of flexible financing structures are available to meet cash flow, budgeting, accounting, and tax requirements. Options include any number of special features, such as skipping payments at a certain time of the year, lower payments at the start of the lease, or deferred or graduated payment plans to match a client’s revenue and cash flow situation.

Payment Structures
Seasonal Payments – Many industries are seasonally sensitive, and sometimes more income is generated during certain times of the year. Capital Resources can arrange a payment schedule which allows payments to rise and fall in accordance with a customer’s sales peaks and valleys.

· 90 Day Deferred – New equipment sometimes has a learning curve associated with it before it can generate income for the customer. Capital Resources offers customers the ability to defer their payments for 90 days.

· Step Payment Plans – Similar to seasonal payments, this program is tailored to customers who are looking for smaller payments to accommodate the newness of equipment. This program will begin with small payments upfront and increasing payments during the term of the lease.

Benefits of Leasing

Single Source 100% Financing
Other methods of financing require a substantial down payment or deposit. Leasing provides a quick method of acquiring equipment without a major cash outlay and can include software, hardware, installation, delivery and training costs.

Tax Benefits
Properly structured leases allow monthly payments to be treated as operating expenses therefore making them tax deductible.

Preserve Working Capital
Leasing allows you to preserve working capital and bank credit lines that can be used for higher return investment opportunities.

Overcomes Budget Restrictions
Non-debt financing helps overcome capital budget restrictions by creating an operating expenditure making it easier and faster to obtain technology needed today.

Hedge Against Inflation and Rising Interest Rate Climates
Aggressive, fixed-rate pricing protects against inflation and allows you to buy equipment today using tomorrow’s dollars with the additional insurance of fixed-rate financing.

Tailored Financing
Flexible financing options include customer-tailored billing cycles matched to your cash flow or budget requirements. A variety of initial-payment-schedule and end-of-lease options are available including lease renewal, upgrade, purchase or return.

Immediate Return on Investment
The advantages offered by the use, rather than ownership of capital can significantly improve the profitability of a business. Profits are produced by the use of equipment, not ownership.

Technology Upgrade, Flexibility and Protection against Obsolescence
Leasing provides the flexibility to upgrade to newer technology since leased equipment is expensed over a fixed period of time and is more easily replaced before it becomes obsolete.

With minimal paperwork and easy to forecast payments leasing is the most convenient way to finance equipment purchases.

The Advantages of Leasing with Capital Resources

For Your Customers

👍100% financing.
👍Ability to upgrade lease for access to newer technology
👍Flexible financing options including customer tailored billing cycles.
👍 A variety of end-of-lease options including renewal, upgrade, or return.
👍Preserves credit lines and working capital for higher return investment opportunities.
👍Overcomes capital budget restrictions by creating an operating expenditure.
👍Faster return on investment due to immediate revenue generation.
👍Aggressive, fixed-rate pricing provides a hedge against inflation.
👍Certain lease structures create tax benefits by allowing payments to be tax deductible.
👍Single source financing for equipment, software, maintenance and installation.
👍Low monthly payments improve cash flow and often qualify as operating expenses.
👍Minimal paperwork and easy to forecast payments make leasing affordable and convenient.

For Your Company

👍Rapid credit decisions provide quick turnaround on credit applications.
👍Invoices are paid immediately upon receipt of delivery and installation verification.
👍Competitive rate structure provides for high sales closure percentage.
👍Flexible lease programs include deferred and graduated payment plans.
👍One on one sales and customer support assistance.
👍Creative, customer-tailored finance options.
👍Anticipate market trends and proactively determine effective finance strategies.

For Sales Representatives

👍Overcomes the dollar barrier associated with retail cost.
👍Eliminates the need for discounting.
👍Allows for easy add-on or upgrade capability.
👍Can be used as a trial close when offering equipment.
👍Lease options assist in compressing the sales cycle.
👍Reducing acquisition to a monthly payment demonstrates revenue and/or cost benefits.