The Leasing GroupThe Leasing Group

Archive : September 2013

By The Leasing Group

Case Study: Testimonial

One longtime Leasing Group client, Eco-Tech LLC, has relied on us for its equipment leasing needs since 2003.

Eco-Tech is a leading provider of industrial, commercial, residential and recycling collection and disposal services for the solid waste management industry, serving Kentucky and Southern Indiana. Some of its clients include the City of New Albany, UPS, Papa John’s Cardinal Stadium, Dupont Chemical and University of Louisville.

Eco-Tech provides roll-off dumpsters (called containers) to its clients, and also provides collection services for waste and recycling material. When Eco-Tech signs a new client, the company must add containers and trucks to its fleet in order to service the new account. Leasing this equipment makes sense for Eco-Tech, because the company can match the value of its new contract to the value of a new lease. It’s the perfect cash in, cash out scenario.

The Leasing Group has helped Eco-Tech secure about eight leases over the past 10 years.

Bob Lee, CEO of Eco-Tech, said that he has worked with the financial experts at The Leasing Group again and again because they take the time to understand the waste management industry, and therefore are able to structure leases with the most favorable terms.

By The Leasing Group

The benefits of going local for your lease financing needs

As a small or medium-size business, you’re likely focused on community engagement and contributing to your local economy. So why would you go to a national financial institution when it comes time to finance your next equipment lease?

Like you, community banks are focused on developing partnerships at the local level. They want to boost commerce in their immediate region and help businesses like yours thrive. Their core mission is to channel financing to the neighborhoods where their customers live and work.

Local banks are more likely to take into account certain intangible factors when approving credit, such as a company’s reputation and the owner’s character. They take the time to consider issues that contribute to lower credit scores and they are more flexible in their credit requirements.

In many cases, businesses can get the same services at a lower cost through a local bank. Community banks offer most of the same services as their national counterparts, while maintaining fees and interest rates at lower levels.

Building a relationship with a local bank through equipment lease financing means you will have face-to-face relationships with a human being. You’ll have daily access to both loan officers and senior management.

Community bankers live alongside you in your community and have a distinct understanding of local needs. Decision-making is often faster, and your local banker will likely stick with you as your business grows and your equipment leasing needs ramp up

The Leasing Group has solid relationships with nearly all of the local banks. Contact us at (502) 547-2773, and let us secure local financing for your business equipment leasing needs.

By The Leasing Group

Four reasons to turn to The Leasing Group for your IT equipment leasing needs

No matter what business you’re in, chances are you’ll need basic technology equipment. From computers to copiers and phone systems to printers, leasing can be a smart way to finance your information technology (IT) needs.

Lease financing is likely available through vendors like Dell or Hewlett Packard, but we urge you to do some research. Vendor financing might seem like a quick and easy solution, but it has its pitfalls.

Here are some benefits of choosing The Leasing Group for IT equipment financing.

  1. Some vendors will lease only hardware. A Leasing Group lease can include software and training, as well as any wiring or cable needed behind the scenes.
  2. Lease terms with equipment vendors often prohibit or restrict your options. The Leasing Group will ensure that you can take advantage of lucrative tax deductions, such as IRS Section 179 , immediately.
  3. The Leasing Group can also help you bundle multiple leases on different types of equipment from different vendors. We can put your Dell PCs and Xerox copiers on one lease, with one set of terms and one payment.
  4. Unlike a vendor, The Leasing Group will let you choose various lease-end options, such as $1 purchase of the equipment or fair-market value purchase.

Some vendors are a viable source for lease financing, but The Leasing Group provides some distinct advantages when it comes to financing your IT equipment needs. Call us at (502)547-2773 to learn more about how we can help maximize your company’s technology through leasing.

By The Leasing Group

Factors that can affect your lease credit approval

You know that your company is stable and successful. You’re confident that you look good on paper. But when it comes to getting credit approval for equipment lease financing, you could still hit a snag.

Why? Because nuances of the approval process vary slightly from bank to bank. Banks use structured approval processes that are similar, but not identical. Some put the highest priority on cash flow, while others look at credit scores more closely. The subtlest differences in requirements can mean approval or denial.

Factors banks consider that can make or break credit approval include:

  • Strength of collateral. Will your equipment generate product and make money for your company? Is the equipment re-sale value substantial enough to repay the lease in the event of a default. Those are the types of questions certain banks consider heavily.
  • Size of financing request. In some cases, a large financing request might be denied because it poses exceeds a bank’s limits. In other cases, a lower amount might cause your application to end up in the reject pile because it’s too small, and not worth the bank’s trouble.
  • Industry concentration. You might pay the price if a bank is already overextended in your industry. In addition, some banks shy away from entire industries because of inherent risks involved or past negative experience.
  • Geography. Some community banks won’t lend outside their state or region. Even if your company is locally based, your credit might be denied if the equipment you’re leasing will be located at a facility outside the bank’s service region.
  • Credit scores. Banks vary somewhat in their minimum credit score thresholds. A few points on the low side might be to your detriment, depending on the bank you approach. In addition, some banks put more emphasis on the personal credit scores of company owners than others.

Expectations vary from bank to bank. Navigating the waters of credit approval on your own can be difficult. The Leasing Group’s financial experts have a combined total of 100+ years of experience, as well as established relationships with many local banks.

Give us a call at (502) 547-2773 to find out how we can help guide your business through the credit approval process.