Capital Access Partnerspresents Equipment Leasing
Do You Need Equipment For Your Business? A business needs equipment to: • Operate efficiently • Allow it to grow • Often produce income
Valley Funding SolutionsCan Help! • Unlimited access to all types of equipment! • We may be able to help your business with an Equipment Lease!
Equipment Leasing Ways of Acquiring Equipment: • Writing a check • Bank Loan • Equipment Lease!
A Few Questions… • What type of business are you in? • How is your credit score? • Do you have a positive cash flow?
We Play “Matchmaker”How do we do it? I am aProfessionalBusinessConsultant: A Professional Business Consultant is a trained professional who guides business owners in both short and long term business growth. He/She is able to speak with business owners on a level that will help them operate their business more effectively and efficiently. He/She is knowledgeable and resourceful individual who keeps abreast of industry trends and developments for the benefit of their clients, and is able to provide business owners with the necessary funding to help operate that business.
As a Professional Business Consultant • Obtain information on your business and business credit • Find the most competitive lease terms for the specific type of equipment you are interested in acquiring
2 Very Important Criteria’s about Equipment Leasing • Cash Flow Product • Credit Based Product Do you have a positive cash flow showing you can meet required payment, as well as, positive credit allowing me to reward you the best rate?
Do you have any assets that are not encumbered (no leins) that are able to “enhance” a lease (If Applicable)?
It’s Very Simple! In order to move forward I need the following: Application Financial Statement
What is “Off-Balance Sheet Financing” & How Does It Relate to Equipment Leasing?
Off-Balance Sheet Financing A form of financing in which large capital expenditures are kept off of a company’s balance sheet through various classification methods. Companies will often use Off Balance sheet to keep their debt-to-equity (D/E) and leverage ratios low, especially if the inclusion of a large expenditure would break negative debt covenants. Contrast to loans, there is no debt to equity in an Equipment Lease. Examples of Off-Balance Sheet Financing include joint ventures, research and development partnerships and operating leases (rather than purchases of capital equipment). Equipment Leases are one of the most common forms of Off-Balance Sheet Financing. In these cases, the asset itself is kept on the Lessor’s balance sheet, and the Lessee reports only the required rental expense for use of the asset on the income statement.
Off-Balance Sheet Financing • Financing “off the balance sheet” • The acquisition and ultimate creation of an asset without creating any debt • OBSF is a tax deductible expense
Types of Equipment Leasing Forms • True • Capital • Full Payout • Master • Net • Sale Leaseback • Municipal • Aircraft and Marine • Operating **Please consult your CPA for any advice**
True Lease Any lease that qualifies as a lease under the IRS. This lease functions so that the lessee has the right to deduct payments as an expense and the lessor has the right to claim benefits like depreciation.
Finance/Capital Lease The lessee has the ability at the end of the lease to acquire title of the asset for an amount (PUT) guaranteed and pre-determined in the lease.
Full Payout Lease The Lessee agrees to pay the Lessor the full amount of the equipment cost plus an agreed upon return over the lease term.
Master Lease An open ended lease agreement whereby the lessee has the ability to add additional equipment to the lease during the term without starting a new lease.
Net Lease All costs associated with agreement between the lessor and lessee are paid by the lessee. This includes the monthly payment, agreed return, taxes, insurance, repairs and maintenance.
Sale Leaseback A business sells existing equipment owned free and clear to a lessor and then “leases it back” as the lessee; Most commonly done within 90 days of the initial purchase. This creates capital for the business.
Municipal Lease A lease document specifically designed for a local or state government agency that leases equipment for that organization.
Aircraft and Marine May be written on different and/or specific lease forms designed by the lessor if the equipment will/could leave the boundaries of the U.S. and cross over into international jurisdictions.
Operating Lease A lease for which the lessee acquires the property for only a small portion of its useful life. An Operating Lease is commonly used to acquire equipment on a short-term basis. Any lease that is not a Capital Lease is an Operating Lease
Ask Yourself… Would you rather put as little as 1st Payment and processing fees ($300) down OR Get traditional financing through the bank putting 15% to 20% down?
We Can Help! • My company has the ability to help you with almost any type of equipment! • Equipment Leasing is considered an expense through the entire term of the lease – Thus creating no debt! Have you ever borrowed any money without creating any debt?
Is This Too Good To Be True? YES! It’s Too Good and It’s All True!
Facts About a Lease • 24, 36, 48, 60, 72, 84, 96, 108, 120 month lease depending on client/equipment • Secured/Unsecured • Almost all equipment can be leased unless hazardous (Firecrackers, Nail Machine, etc.)
How A Lease Works • PUT assigned to end of term • Fees up front include • First and Last Payment • Processing Fees ($200) So what’s a “PUT?”
PUT • A sum amount essentially assigned by a lessor which when paid at the end of a lease term will transfer ownership from the lessor to the lessee A PUT can be: • 10-15-20% of original lease amount • Fair Market Value • Actual Market Value OR
Is An Equipment Lease A Liability On Your Balance Sheet? No. • An equipment lease is an expense through the entire term of the lease = 100% tax deductable. • When/If the last payment (PUT) is made, It becomes an asset on the balance sheet. WOW!
Can You Imagine? • Having more money in your business checking account • Not creating “debt” for your business • Having enough equipment for your business to operate it efficiently and, in some cases, produce additional income! Does this type of financing appeal to you?
Great! All We Need To Do Is: • Review your Financial Statement • Fill out the necessary documents • Get you an approval right away!!!
NO FEES! • It’s important for you to know that my company accepts no up-front fees for applications • I will get you an answer based on the information you provide at no charge to you!
I don’t want to take away too much of your time as I know there are other things you would like to be doing….
Valley Funding SolutionsThanks You For Your Time! Contact Ross Goodwin, CCFC at: Valley Funding Solutions 1163 N. Redding Way Upland, CA 91786 (909) 946-0017 phone (909) 946-0016 fax email@example.com www.valleyfundingsolutions.com