Customers are always looking for innovative ways to increase sales and achieve their expansion requirements. Helping our Customers acquire the equipment often requires a Special Payment Plan that is best suited to their particular situation. The logic behind these payment plans is to time the monthly payments so that they are made when it is convenient for the Customer.
Seasonal Payment Plan: During each year the customer may skip three consecutive monthly payments. Therefore, only 9 payments each year would be made. Companies that experience a slow time of year, often select the Seasonal Payment Plan. For example, cold temperatures during the winter months prohibit companies in the paving industry from laying new asphalt and generating revenue. Therefore, preserving cash flow during the winter months is crucial. This payment plan lets the Customer skip payments for the same three months every year when business is slow. Back to Top
3-Month Deferred Payment Plan: This plan starts with a Security Deposit of $25, then the first 3 payments are only $25 each, followed by the remaining number of full payments (36, 48, 60 payments). This plan ends with either a $1.00 or 10% purchase option.
6-Month Deferred Payment Plan: This plan starts with a Security Deposit of $25, then the first 6 payments are only $25 each, followed by the remaining number of full payments (36, 48, 60 payments). This plan ends with either a $1.00 or 10% purchase option.
The 3 and 6 Months Deferred Payment Plans are often used when companies need the necessary equipment now, but want to delay the cash outflow until the equipment starts producing revenue. This scenario may apply to many types of equipment. In the case of computer software, the implementation period may take months until the software produces cost savings or revenue increases. Even construction equipment that is productive on-the-job immediately, may take months before it produces revenue because it takes time to complete the job, send out the invoice, and collect the money. Deferred Payment Plans postpone the cash outflow of monthly payments. Back to Top
72-Month Terms are offered on titled vehicles, selected construction equipment and manufacturing machinery that are four years old or newer. This is financing solution that enables the Customer to get low monthly payments on vehicles and equipment that has a long usable life. Back to Top
TRAC Leases feature lower monthly payments because there is a large residual at the end of term. The size of the residual assumption varies by the Agreement term and the type of the equipment or vehicle, but the residual may be as large as 40%. At the end of the term, the Customer may either purchase the equipment for the stated residual assumption or arrange for the sale of the asset. The Customer is only responsible for any short-fall if the sales price of the asset is less than the residual assumption. If the sales price is more than the residual, then the Customer keeps the excess. The advantage of this leasing arrangement is the low monthly payments and for companies that regularly trade-in assets every three to five years and don't plan on keeping a particular asset long-term. Back to Top
Balloon Payment Plans Similar to TRAC Leases, Agreements that end with large Balloon Payments benefit from low monthly payments. The end of term Balloon Payment is determined on a deal-by-deal basis and depends on the specific equipment or vehicle and the length of term desired. Back to Top