TEQlease offers a customized program that allows you to self-generate customer equipment lease quotes with our easy-to-use online quoting tool, TEQQuote. You are assigned a dedicated Program Manager who will be with you every step of the way. The easier you make it for your customers to buy from you, the easier it is for you to sell to them.

Our vendor program is geared to all equipment selling industries. For more information on vendor equipment financing with TEQlease Capital visit our website here or call one of our representatives at (855) 426-1006.

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To that end, TEQlease is rolling out a series of customized, flexible financing options designed to help our vendor partners sell more equipment. These are part of our special promotions available through the end of 2017.

These options include:

Deferred Payment Plan

This option is perfect for situations where it may take a few months before the equipment is generating revenue for the customer. It gives Vendors the option of making the sale today, getting paid in full today, and allowing the customer to defer payments for as long as 90 days.

Seasonal Payment Plan

This option is designed for customers with fluctuating periods of higher or lower revenue. Think of an ice cream store in Minnesota or a winter coat store in Florida. The customer can designate 3 consecutive months during any 12 month period for reduced (as low as $25.00) monthly payments.

Quarterly, Semi-Annual, Annual Payments

Different companies budget in different fashions. TEQlease has the ability to customize the timing of the payments to fit the client’s budget. For example, a Charter School may receive annual funding. We can create an annual payment option to mirror this. Or a contractor might get paid on a quarterly basis. We can schedule the financing payments accordingly.

Residual Programs

If it helps close a sale, we have the ability to “backload” a transaction and thereby keep the payments especially low. For example, we can defer 10%, 20%, even 30% as an end of term residual payment. As a result, the customer’s monthly payment would go down accordingly.

“Same as Cash”

Need a special program similar to the “5 years, 0% interest” programs you see on TV? Let’s talk! We have experience putting these together for qualified vendor partners.

Which of these programs would be most helpful to you? We’d be happy to discuss how these options can work in your business and help you close more equipment sales faster. Want to learn more? Give me a call (or email) today so we can get started for you. If you’d like schedule a specific time to talk, click here.

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Occasionally, we’ll hear a vendor tell us that financing doesn’t apply to them.  “All my customers pay cash”, they say.

Let me be clear, if you have a customer that’s paying cash, take It!  (Of course, there may be an opportunity to up-sell, but that’s a topic for another time.)

But according to recent surveys, nearly 8 out of 10 businesses across the United States use financing to acquire business equipment.  You can review the key findings here.

If all your customers are paying cash, you’re probably leaving money on the table.  According to that report, “The share of cash purchases declined for companies of all sizes from 2011 to 2015″.  (emphasis added)

If your sales aren’t what you’d like them to be, and you’re not offering financing, you might be competing with somebody who is.

Want to learn more?  Give me a call (or email) today so we can get started for you.  If you’d like more information first, click here.

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In a recent article published on the website Elite Daily (here), it describes the necessary attributes and habits that an entrepreneur must have to be successful.  The article shows what entrepreneurs are doing right, but may people say that this applies to all business owners everywhere.  Would you agree?

You won’t know if you can fly until you jump and find out.

You can plan all you want, but you won’t always be able to plan for everything.  You will come across issues that you didn’t foresee, problems that you didn’t expect. The true test of an entrepreneur or any business professional is the way that they deal with the unexpected.  You won’t know your capabilities until you try. But you must believe that you can handle whatever comes your way.  If you don’t have faith in yourself, those you lead won’t have faith in you. When this happens, you’ll all fail.

Say “yes” first — and then figure out how you’re supposed to go about doing it later.

In a world where we have the ability to find the answers by typing a few words into a search engine, we have the ability to learn anything.  We all have the opportunity to jump into something and learn as we go.

“An entrepreneur’s job is to solve problems, and you won’t know most of these until they arise. If you need to learn how to build an airplane, go ahead and jump, and Google directions as you’re making your way toward the ground. You’d be surprised what you can accomplish under pressure.”

Are these tips only applicable to entrepreneurs?  Should all owners operate their business with this mindset?  Share your thoughts below!

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But there’s one thing that is the same for each of them.  It’s the question of pricing.  How do you bring it up?  When? And what kinds of options do you offer to make the customer’s investment decision an easy one.

This is a topic that has generated a lot of ink over the years.  (Here, here and here are just a few examples.)  In my 25 years selling to businesses, when people ask me when to bring up pricing, my answer is usually, the sooner the better.  But that only applies if you bring it up the right way and offer appropriate options.

‘The right way’ includes making sure you understand your customer’s requirements.  If the customer needs a Hyundai (they’re great cars), don’t try to sell him a Cadillac.  Even early in the sales cycle, you need to be able to collect enough information about your prospect (what he does and how he does it) to have a clear picture in your own mind of the solution to his problems.

Offering ‘appropriate options’ includes offering monthly payments.  And by these options early in the sales cycle, you accomplish several things.

Qualify for Pricing and Budget  Too many salespeople hesitate when the question of pricing comes up.  Often this is because the salesperson doesn’t want to hear an objection.  But if a prospective customer doesn’t have the budget to buy, or needs/wants to take advantage of the Lease/Finance option, isn’t it better to find out sooner rather than later?

Offering these simple options helps address the pricing/budget question early.  It also gives the salesperson the information he/she needs to make sure he/she is spending time selling to prospects that have the ability to buy.

Controlling the Buying Process At TEQlease, because we take the time to fully understand your products, your customers and your selling process, we are able to quickly and accurately quote monthly payments and provide “pre-approvals” based on certain minimum information.  With these pre-approvals in hand, your salespeople are better able to control the sales process by understanding and controlling the prospect’s financing or buying process.  In addition, with these pre-approvals in hand, your salespeople can feel confident that they are spending time with prospects that have the ability to buy from them.

At TEQlease, we provide a number of different options and online tools designed to help Vendors sell more products.  These make it easy to calculate and quote payment options specifically designed with your company in mind.

For more information, call Brian Link at 818-222-1006

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Historically, those assumptions have always been that buyers follow a distinct and linear process when it comes to making buying decisions.  According to research from a leading research and advisory company (here), the current reality of how B2B buyers buy is quite different.  Rather than a linear process, most buyers work through four different, parallel streams any time they make a significant buying decision.

These four streams include:

• Exploration: This is where buyers begin to identify a need or opportunity and investigate ways to address it.  This includes working with vendor representatives, talking to colleagues, and doing research via the internet.
• Evaluation: Likely solutions are investigated in greater depth.
• Engagement: Solution providers are brought in to discuss solutions and apply them to the buyers specific need
• Experience: Increasingly, pilots or proof of concepts are involved to demonstrate specific solutions

Because these are not a linear sequence of steps along a well defined sales process, it’s not uncommon to have a situation where a given buyer might be engaged with one provider and still exploring other options with other providers.

The key here is that successful salespeople will focus more on understanding where a buyer is in his decision making process, and making it easier for them to buy, than on trying to fit them in to a predefined process that represents how salespeople want to sell.  In fact, the same articles referenced above indicate that the role of the sales force is more important than ever.

As the B2B selling landscape continues to evolve, it becomes vital that salespeople use every available tool to align themselves with how buyers want to buy.  That includes the many economic advantages of providing financing options. 

The post Selling B2B: What’s New? appeared first on TEQlease Capital.

Having worked with hundreds of Vendor partners over the years, at TEQlease, we have found that the most successful Vendors use our Lease/Finance options as exactly that type of sales tool.

Vendors who use our Lease/Finance options as a way to qualify opportunities early in the sales cycle have significantly higher closing ratios than Vendors who bring them up at the last minute. Why? Because using the Lease/Finance option as a sales tool means taking the pricing objection off the table early and having better control of the sales cycle by controlling the financing.

Consider the following example. A prospect is considering equipment that costs $100,000. The salesperson presents him with the following options:

1. One Time Payment $100,000.00
2. Capital Lease (60 Months) $ 2,027.64*
3. Operating Lease (60 Months) $ 1,799.32*

By offering these options early in the sales cycle, the Vendor is accomplishing several things.

Qualify for Pricing and Budget

Too many salespeople hesitate when the question of pricing comes up. Often this is because the salesperson doesn’t want to hear an objection. But if a prospective customer doesn’t have the budget to buy, or needs/wants to take advantage of the Lease/Finance option, isn’t it better to find out sooner rather than later?

Offering these simple options helps address the pricing/budget question early. It also gives the salesperson the information he/she needs to make sure he/she is spending time selling to prospects that have the ability to buy.

Controlling the Buying Process

At TEQlease, because we take the time to fully understand your products, your customers and your selling process, we are able to quickly and accurately quote monthly payments and provide “pre-approvals” based on certain minimum information. With these pre-approvals in hand, your salespeople are better able to control the sales process by understanding and controlling the prospect’s financing or buying process. In addition, with these pre-approvals in hand, your salespeople can feel confident that they are spending time with prospects that have the ability to buy from them.

At TEQlease, we provide a number of different options and online tools designed to help Vendors sell more products. These make it easy to calculate and quote payment options specifically designed with your company in mind.

For more information, call Brian Link at 818-222-1006

*NOTE: Payment options are for illustration purposes only. Certain assumptions have been made regarding prevailing interest rates, equipment valuations and other market factors. These numbers are also PRE-TAX numbers. Certain tax benefits occur with each option that also need to be considered.

The post Using Financing as a Sales Tool appeared first on TEQlease Capital.

To many financing partners, servicing a vendor used to mean sending out a pad of applications, setting up an 800 number and expecting applications to come rushing in.  Those days are gone!  For a financing source to earn the right to do business with a vendor, it needs to demonstrate the ability to truly add value.  This is much more than asking for applications.  It’s much more than just offering low rates.  (87% viewed banks as low rate sources who were “slow and restrictive”)  It’s about helping vendors sell more products using financing as a tool in sales.

At TEQlease, we’ve been developing vendor programs for years.  We start by asking three basic questions:

1. What does the vendor sell,
2. Who does the vendor sell to, and
3. What is a typical transaction size or range.

With this basic information, we develop a framework of special programs that help our vendor partners overcome price objections, qualify opportunities early in the sales cycle and beat their competition.  We’ve done this with vendors ranging in size from small vendors doing a transaction or two a month all the way to some of the largest technology vendors in the world.

Are you one of the 62% of dealers who are “regularly” in search of new lending relationships?  If so, we should talk.  We’re easy to work with.  Visit our Vendor home page here for more information.

If you have specific questions, feel free to call Brian Link at 818-222-1006 and ask for Vendor Services.  You can use the ‘Contact Us’ form here or if you prefer, use our online scheduling tool to schedule a specific time to talk.  Click here.

The post Survey of Equipment Finance Decision Makers appeared first on TEQlease Capital.

For most executives, the first consideration is to evaluate the objective of the transaction. Is it owning the equipment?  Or is it using the equipment that will be the source for the future profits to the business?

“Invest In Assets That Appreciate In Value… Lease or Rent Assets That Depreciate In Value”

“Owning” business assets can be particularly beneficial when those assets appreciate in value; real estate being the prime example.  However, most assets like furniture, fixtures and equipment, only depreciate in value, in most cases fairly rapidly.  When the objective is getting the maximum use out of a depreciating asset, it is that “use” that brings profits to the business, not ownership or the “appreciation” of the asset itself. Maximize the “use”…minimize the investment.

Leasing Makes Business Sense And Tax Sense

Most businesses will write off 100% of their lease expenses.  Bank loans for equipment must be capitalized and only gradually depreciated over a period of 5,6,7 or more years!  Operating leases can effectively accelerate those write‐offs even faster, putting cash into your pocket sooner.

A Complete Solution

A typical lease covers as much as 110% of the equipment cost because it also covers the delivery, installation, tax, and other soft costs—in addition to the equipment itself.  Our leases only require two month’s rent in advance.  There is a UCC filing only against the specific equipment leased and not agaainst the business in general.  At the end of the lease term, just return the equipment (with no further obligation!) and upgrade to new equipment, or if you prefer, we will sell you the equipment for its predetermined end of term option ($1, 10% purchase option or PUT, or fair market value, etc)

Is That “Prime Rate” Offer A Good Deal? Let’s Talk Rates…

As you probably know, there is not a single prime rate; rather each bank is free to establish their own “prime” rate‐sometimes it is as low as Wall Street Journal prime, although we’ve often seen individual banks prime (their best rates to their best customers), set as much as 4 points above the benchmark WSJ‐ published rates.  Let’s assume for the sake of this example that your bank has offered you a WSJ prime rate of 4.75% “plus 2 points.”  Obtaining a bank loan at such a “lower” rate usually requires that you keep 20‐30% of the loan amount in the non‐interest bearing, compensation balance accounts at the bank. Using the lower 20% figure for example, the bank is really lending you 80% of their money and 20% of your own money.

Is It 6.75%, 15% or 26%

When you compute the real yield on that 6.75% loan offer, you will find it Is actually a 26% loan. (Because you’re paying interest on 100% of the Loan amount, but have only received 80% of the money from the bank, the Rest is your own compensating balance being “loaned” back to you). Using the same formula, a 10% compensating balance brings the bank’s effective loan rate ‘down to 15%. Anyway you cut it, that’s a far cry from 6.75%!

Some executives say, “we keep $10‐20,000 in their checking account anyway…” Perhaps so. But that’s your business decision, for your convenience, today. With a compensating balance clause in a bank loan, it becomes a requirement. Fall below that figure for any reason and you are in default on your loan. Change financial institutions or move to a “sweep” account format for example and again you would be in default. It’s all in the fine print.

What Else Is In The “Fine Print?”

Plenty. The following is a list of issues that have come up for many of our clients examining the same bank vs. lease decision. Here are some “bullet points” to compare and contrast typical commercial bank terms with our lease terms. There are many critical differences.

“Bank Fine Print 101:”

• Bank line rates float with interest rates
  • Lease rates are guaranteed fixed for the term of the lease
  • Short‐term rates are very low now‐ where will they “float” to during the next 12, 18, 24 months?
• Do you have an existing line of credit at the bank?
  • What effect will a new loan have on the cash available under your business line of credit, for special business opportunities, emergencies etc.? In most cases your total access to funds will be reduced. This is a very important point and has to be given serious consideration in your decision.
• Is the bank actually offering a credit line or a term loan? There are many key differences:
  • Most banks require that credit lines be brought to zero at least once every 12 months. They want to reserve the option to call the line should your industry start to “go south,” or if the regional economy, or your own business prospects start to “soften” (In their sole opinion). Banks like short term loans.
  • Where would you be if the bank elected not to renew foe another 12 months?
• Banks typically do not fund more than 75‐80% of the net equipment cost.
  • Our lease can cover as much as 110% of the costs since, unlike banks, we will include shipping, training, installation, initial maintenance and other “soft” costs.
• Banks are far more restrictive than leasing companies, about the equipment they will finance.
  • Many banks will only do “hard” collateral (machinery, etc.). Leasing companies will lease all kinds of business or commercial equipment, even 100% software transactions.
  • Most banks will not even consider “used” equipment. We do it all the time!
• Most banks require ongoing financial disclosure. Make no mistake about it, with a bank line you have a new “partner”.  Almost every bank will require you to submit annual or quarterly financial statements and/or tax returns for their review.  Further, bank loans are often conditioned on your maintaining certain bank‐specified key financial ratios. Working Capital tests, debt‐to‐equity, current and quick ratios are commonly used and specified.
  • Will this hinder your ability to run your business, as you deem prudent?
  • It is routine for banks to restrict your access to any debt obligations from any other Sources without their express consent‐ and you cannot assume that you will receive it.
  • If you fall below the bank’s mandated ratios, you will be in default.
  • There are absolutely no financial reporting requirements with a lease.
• The bank will place a “blanket lien” on all of your assets.
  • Our UCC will be filed on the leased equipment ONLY. Nothing else is encumbered. None of your financial flexibility will be compromised.
  • Keep in mind that if the bank were to decline to renew your line (at any point in the term) that those “blanket liens” would still be in effect, blocking your attempt to use your own assets as collateral for any new (replacement) funding.
• The bank will likely require you to cross‐collateralize any new obligation with all of the accounts you maintain at that institution‐personal checking, savings, trusts etc. (this is often buried in the fine print)
  • Your lease is a freestanding obligation.
• Even if you are not signing “personally” for this obligation with your bank, you may find that any previously signed, personal guarantee is deemed “continuing and unconditional” vis‐á‐vis all new obligations at that same institution.
• Bank fess and closing costs typically run 1‐4% of the transaction amount. These fees can have a significant effect on the real interest rate you are paying. Ask for a copy in writing before you sign and do the math.
  • Leasing companies generally just charge fees to cover their costs, such as documentation, filings, funding and inspection fees. These are generally in the neighborhood of $300 ‐ $700.
• Are you a “key customer?” That may sound flattering, but it usually means that the bank is extending its offer based on your “entire banking relationship” —your other accounts, the other balances that you maintain and the service fees/income that you generate for them.
  • It also means that you are tied to that bank exclusively for the term of the loan. If you move accounts and/or services, your rates will almost certainly jump‐way up. Not sure? Ask them specifically.
• Are bank‐mandated “compensating balances” your best use of your own cash and operating capital? Where else could those funds be working (earning) for you, if they were not “committed” to the bank line?
• The bank can call your loan! There is probably a clause that permits the bank to call your loan if they feel “uncomfortable” about the prospects for your industry, without regard to your payment history. (This too is often buried in the fine print. Check it out!)
• Merger Mania‐ Banks are “merging” and restructuring all the time. Your bank may be purchased by another bank. The surviving bank might have different lending criteria and may not like your industry, or the equipment. Because default provisions are so loosely worded (intentionally); they probably have the ability to call your loan. They get their money back, you may be out in the cold.

Are you Ready To Pay These Very High Prices… For Those “Very Low Rates?”

Most customers find that they are being asked to pay a very high price for those seemingly “very low rates.”  Operating & financial restrictions, capital “frozen’ as unproductive “compensating balances,” business assets encumbered, future float risk, reduced availability of their own critical business credit lines etc., etc. Leasing has become a trillion dollar industry right alongside the commercial banking industry and for good reason. Banks are great at making short term working capital loans, but leasing companies are specialists at providing long term equipment financing. The points outlined herein are just some of the many reasons why businesses from giant multi‐nationals to local “mom & pops,” have decided to “just say no” to their bankers overtures and have chosen to lease instead.

Your comments are welcome.

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