vendor powerpoint leasing

Benefits of LeasingBenefits of Leasing

Equipment Sales Professionals

Leasing as a Sales Tool

In partnership with…

1Q / 2013

Leasing as a Sales Tool

8 out of 10 companies lease equipment

Leasing is a convenient method of financing, preserving credit lines for working capital rather than being tied up in capital expenditures

The use of leasing can enhance your sales volumes and help you keep customers for life

The Benefits of LeasingThe Benefits of LeasingThe Benefits of LeasingThe Benefits of Leasing


• Accommodate Budget Restrictions

• 100 per cent Financing

• Ease of Acquisition

• Conserves Working Capital

• Easy Documentation

• Promotes New Equipment at Regular Intervals

• Possible Tax and/or Balance Sheet Advantages

Offer total support: You can offer one bundled solution for equipment and financing, thus simplifying your customer’s decision

Overcome price objections: You can increase sales and enhance profit margins by offering the monthly payment as the financing solution

Control the sale: You maintain control over the acquisition process by providing the full equipment and financing package


Sell the Monthly Payment

Rather than quoting an expensive cash price, offer an attractive monthly payment

Cash Priceupfront

Lease per month*

*Based on $100,000 X .02119 60-month lease rate factor

$100,000 $2,119 vs

Which would your customer more easily tolerate?


*all rate factors used in this presentation are examples only. Actual factors may differ.

Avoid Equipment Discounting

Offering monthly payment prevents “sticker shock”

Avoid discussing the issue of the equipment cash price, and avoid the necessity of discounting the price to close the sale

It is easier to close a larger sale, thereby increasing your revenue and earning potential

$100,000 $2,119 vs

“Make that $98,000 and you have a deal.”

“Is that all? That’s a great

price.”**Based on $100,000 X .02119

60-month lease rate factor



Sell to Your Customer’s Budget A longer lease term will lower the monthly payment

without reducing the price of the equipment

$3,19636 months

Based on $100,000 X .03196*sample lease rate factor

Provide your customer with a quote that fits their budget requirements

A 36 month term is too expensive? Suggest a 48 or 60 month term

$2,51048 months


$2,11960 months




Use the suggestion of a longer term to up-size your equipment proposal

With term flexibility, you can meet and exceed your customer’s needs

Sell to Your Customer’s Budget

A longer lease term will give your customer more equipment for their money

$3,196

36 months

Based on .03196sample lease rate factor

$100,000

$3,196

48 months


$127,275

$3,196

60 months


$151,988



The Benefits of Leasing - Recap

Sell the monthly payment rather than the cash price

Avoid sticker shock and equipment discounting to maintain revenue

Increase sales and revenue through the use of lease term and payment amount

Receive fast credit approval and a timely sale to turn inventory quickly

Present simple lease documentation

Leasing KNOW-HOW for Equipment Sales Professionals


Call Curt MacRae20 Division St.

Coldwater, MI 49036 248.238.7214

Now..

Let’s

talk

M

uni

For Municipalities

• Increased purchasing power – Monthly payments may help keep the lessee within its budgetary constraints

• Acquire equipment from various vendors – A single lease can allow the municipality to acquire diverse equipment

• Leasing is treated as an operating expense – lessee may be able to circumvent a budgeting problem / avoid lengthy appropriation process

• Lease payments are all inclusive -- can include installation, maintenance, shipping, training, software

• Lease can be paid off early -- at any time during lease-term

• Flexible payment terms are available -- Leases are from two to five years (or longer for certain situations); payment options include monthly, quarterly, semi-annual, and annual with the option to defer payments until the next fiscal year

• No down payments / advance payments required

• Ownership leases – at end of term, lessee owns the equipment; there is no residual


Municipalities and their Budgets –

The great majority of municipalities implemented new

budgets on July 1,and are ready for another year of serving

their public. Across the board the cities, counties, and

various types of districts are facing reduced revenues and

the need to control their expenses and maintain their cash

reserves. Municipal Lease/Purchase financing allows them

to pay for needed equipment over time and that is the

same benefit that we have discussed with commercial

clients for decades.


Characteristics of Municipal Lease Purchase Financing • Voter approval not needed.-- funding comes from annual operating budget

• Lease rates compare favorably to Bond Issues when all costs considered • Proves effective for terms under 10 years and less than $10 million.

• Lease documentation is simpler and faster; staff time and soft costs are minimized.

• No additional fees or reporting requirements. • Early buyout options are available.

• Finance only what is needed, with the flexibility of choosing the term required

• Expected useful life of leased property matches the term of the lease

Characteristics of Bond Issues • Need voter approval

• Cost of election and advertising, and issuance measurably affects true borrowing rates

• Appropriate for large issues and for long terms, but may not match capital needs

• Process is slow, consumes staff time and incurs hidden expenses and overhead costs and commits the municipal entity to fixed payments regardless of local economy cycles • Costs continue after issuance (Trustee fees, compliance reports, audit and review fees)

• Restricts future bond issues because of covenant restraints

• Often carry prepayment penalties

• Bond term may exceed useful life of equipment.

Avoid Equipment Discounting

Offering monthly payment prevents “sticker shock”

Avoid discussing the issue of the equipment cash price, and avoid the necessity of discounting the price to close the sale

It is easier to close a larger sale, thereby increasing your revenue and earning potential

$300,000 $5,638 vs

“Make that $290,000 and you have a deal.”

“Is that all? That’s a great

price.”**Based on $300,000 X .018793

60-month lease rate factor



The Benefits of Muni Leasing



Tailor to municipal budgets and across budget years

Reduce price negotiation


Present a total solution for your customer

Leasing KNOW-HOW for Equipment Sales Professionals


Leasing provides your clients A TOTAL SOLUTION



Tailor to municipal budgets and across budget years

Reduce price negotiation


Present a total solution for your customer

Call Curt MacRae - 248.238.7214 [email protected]

THANK

YOU…

from

248.238.7214www.curtisfunding.com

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