Do you need a Customized Solution?
By Kevin F. Clune, CLP
Does your company have unique circumstances that aren’t being met by traditional equipment financing solutions? Do you need a term other than the traditional 36, 48 or 60 month contract that is typical of many banks and leasing companies? Would you prefer a seasonal payment schedule due to your erratic income? Will you be acquiring equipment from multiple vendors with different acceptance dates but want to place it all on one loan or lease?
If you are under the impression that special circumstances such as these preclude you from financing your equipment with a lease, you may be surprised to know that your needs may be met by some lessors. Accepting the status-quo that is offered by capital equipment financing sources that are “too large to adjust” is just not an option in these challenging economic times.
Most companies no longer have the luxury of turning away business just because it doesn’t fit their sweet spot. Fortunately, Clune & Company is structured to be nimble enough to tailor contracts to accommodate unusual situations.
I was recently reminded of this flexibility when I was able to adjust the term of a lease contract for a customer. We had learned of a situation in which an architectural firm needed to equip temporary job sites. They wanted an equipment lease for a term that would match the job duration. Their bank could not/would not accommodate that request. A quick calculation was made with the adjusted term and a contract was easily amended to reflect the changes.
Seasonal equipment leasing is another example of non traditional financing. With the arrival of Spring (finally), many weather dependent companies request financing for their equipment on correlating payment schedules. This type of contract enables them to quickly acquire the equipment they need so they can have income prior to the payment due date.
Lastly, the goal to have one loan or lease payment for various pieces of equipment, from multiple vendors, may be difficult to arrange with some funding sources. Equipping a new office or updating an existing business might require computer equipment, a phone system, a copier/printer, and office furniture. The easy solution would be to establish a line of credit with the financing entity and draw down on it with each acquisition. At Clune, we can also offer a co-terminus lease, which adjusts the terms and monthly payments accordingly so that all the equipment is paid off at the same time. Whether you choose co-terminus or not, we can provide one monthly statement covering multiple equipment schedules, no matter when they are added.
You may be surprised to find that leasing companies are now more willing and capable to satisfy your special circumstances, and thereby gain your business. If you have a request for a ”customized solution” from Clune & Company, please let us know in the final question of the survey that we have included in this newsletter. You won’t know unless you ask.
By Kevin F. Clune, CLP
Clune & Company
