Equipment & Government Leasing Blog

Article regarding Essential Use (EU) and EMR

spfix — Mon, 01 Nov 2010 16:03:58 +0000

Here’s an excellent article dealing with this important issue.

http://ehr.healthcareitnews.com/priming_pump_QA.html

Fire/EMS Sales Professionals

spfix — Thu, 07 Oct 2010 19:15:22 +0000

Join our LinkedIn Group

http://www.linkedin.com/groups?mostPopular=&gid=1798238

Will New Investment Tax Credit Spur New Purchases?

spfix — Wed, 29 Sep 2010 13:40:52 +0000

The Small Business Jobs and Credit Act of 2010 is finally law. The ACT increases for 2010 and 2011 the amount of investments that businesses would be eligible to immediately write off to $500,000, while raising the level of investments at which the write-off phases out to $2 million. Prior to the passage of the bill, the expensing limit would have been $250,000 this year, and only $25,000 next year. In addition the 50% bonus depreciation has been extended through 2011. Under the Recovery Act, 75 percent of capital gains on key small business investments this year were excluded from taxes.

The Small Business Jobs Act temporarily puts in place for the rest of 2010 a provision called for by the President – elimination of all capital gains taxes on these investments if held for five years, and The bill would allow certain small businesses to “carry back” their general business credits to offset five years of taxes – providing them with a break on their taxes for this year – while also allowing these credits to offset the Alternative Minimum Tax, reducing taxes for these small businesses.

Credit goes to Terry Winders for this recap of the Small Business Jobs and Credit Act of 2010.

Terry can be reached at leaseconsulting@msn.com.

Sell Your Service Contracts for Cash

spfix — Wed, 01 Sep 2010 16:55:46 +0000

Happy September.

We have a new and exciting program that we are now offering our current and future clients. If you sell a service in combination with equipment to investment grade credits, we need to talk. This program allows smaller vendors to play with the big boys.

Our Contract Financing (or monetizing) is a very flexible financial tool providing a number of capital options – much less expensive and onerous than equity or sub-debt. So long as there is an equipment component, contract financing can be used to:

Acquire equipment necessary for the fulfillment of a service contract
May provide much needed working capital to run your business and/or develop infrastructure to facilitate the contract services
Refinance existing equipment and improve cashflow
Accelerate contract revenues
As an entre’ to repeat business

Each transaction is a custom product designed to meet the needs of you and your customers.

We provide contract financing for just about any contract where a component of equipment is necessary to complete the contract. There is a provider (usually a smaller company) and an end user (investment grade). The term of a Contract Finance can be as short as 12 months, or as long as 10 years. This product has a variety of applications and has worked successfully with:

Service Agreements
SOWs (Scope of Work)
Warehouse Agreements
Management Agreements
Distribution Agreements
Muni Contracts of $5 Million and over
Federal Contracts of $10 Million and over

/li

Software Leasing

spfix — Thu, 05 Aug 2010 14:44:36 +0000

Many of our vendor clients did not realize that their client-server software solution can be leased. LeaseSource has been providing leasing for software since about 1992, almost since it’s founding in 1989. Additionally – we often can include data input, travel, training and future support costs as well. This way, clients can budget 2 or 3 years into the future, knowing that their software will be as current as the day they went live. We currently offer, subject to credit approval of course, software leases up to 50K without proof of income. What we look for is time in business (TIB of 5+ years is good, thought not mandatory), good personal credit scores (700 is nice) and not too much revolving debt for those guaranteeing the lease (30K or less is desirable).

We also offer software leasing and technology leasing to the public sector including public hospitals and public safety (police, fire departments, first responders, etc.). This is a great way to make more sales while helping your clients use their cash more effectively.

For more information: www.leasesourceinc.com/program/software.php

Equipment Sales Tip – Control the Financing

spfix — Mon, 02 Aug 2010 16:46:12 +0000

Now more than ever, financing options are becoming a HUGE factor in the equipment acquisition process. Salesmen of heavy equipment/capital equipment will tell you time and time again, the ability to control the financing process allows them to close more deals. In this economy, many companies simply cannot handle the burden of paying cash for new equipment purchases, even if the purchase is necessary. Small businesses all across the US and Canada are delaying equipment acquisitions until the economy turns around, even if the upgrade/purchase is well past due. As an equipment/technology vendor, the ability to offer comprehensive equipment leasing and financing options is a must, and the ability to control the financing process can be just as important.

Annual equipment leasing volume in the United States is now over $260 billion; looking closer, those figures reveal that over 35% of all capital equipment is acquired under an equipment lease contract. Equipment leases are a very popular financial tool that is currently used by over 80% of U.S. companies to acquire capital equipment. Your customers WANT to lease!

As a salesperson, you have a couple different choices when your clients inquire about leasing & financing options:

Your company can finance the equipment internally- This option ties up cash and you may face future liability in the event of any defaults.
Tell your client that you do not directly offer financing options- This may alienate your customer and drive them into the arms of another vendor that might be able to offer flexible financing.
You can provide them a list of “approved” equipment leasing companies to choose from- The client is forced to pursue financing on their own. In this economic environment, the process cannot only be confusing, but very time consuming as well. Your customer can easily get lost in the sea of commercial financing options.
Develop a relationship with a full-service leasing company- This option provides the vendor with a cash sale and gives the end-user flexible financing options. Full-service equipment leasing companies should be able to provide comprehensive financing for a wide variety of credits (not just your A++ credits).

To avoid delays and loss of control you MUST offer financing along with your equipment. But, as discussed, getting into the finance business presents a whole different set of challenges and your business is selling equipment, not financing it. During the slower summer months, take the time to develop a relationship with an equipment leasing company. Make sure they are able to offer marketing support and truly understand your market and clients. A proactive marketing partnership gives you the benefits of an internal finance company while avoiding the challenges, liabilities and exposure of being in the finance business.

Help your salespeople make more sales with less hassle… offer equipment leasing & financing options!

Welcome to the new LeaseSource blog

spfix — Sun, 01 Aug 2010 22:01:40 +0000

We will be tackling many subjects such as:

Software leasing and equipment leasing (of course)
The current political situation – will probably take a few risks here
How to get viable leads from your leasing company
The SMB environment

Please check back often to see the latest thoughts and opinions.