Customers request better options for financing
There are more flexible options available to business customers for financing equipment than the local bank that allows them to leave their line of credit in tack.
Aurora, Illinois – January 25, 2009 – Hayes Trading Co announces a number flexible lease/financing options for customers.
Real Lease/Financing Options!!
1. Standard Payment Plans 2. Seasonsal Payment Plan 3. 3-Month Deferred Payment Plan 4. 6-Month Deferred Payment Plan 5. 72-Month Terms 6. TRAC Leases 7. Balloon Payment Plans 8. Compare Lease/Financing With Our Partners To Your BankStandard Payment Plan: The most frequently chosen purchase option is $1.00 at the end of the term. We do offer a 10% of equipment cost purchase option, as well as a Fair Market Value option. When you get your next to last monthly payment invoice, you include a brief note to the Lender stating that you want to exercise your purchase option and include a check for the $1 or 10% of equipment cost. If you have a Fair Market Value purchase option, you need to contact our lending partner to begin the negotiation process. You will be contacted about 60 days before the end of the Agreement term to remind you of purchase option procedures. We have lending partners that offer 12-72 month payment options and include all of your soft costs, such as freight, training, installation, etc.
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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 the 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. back to the top
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. back to the top
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 the 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 the 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 the 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 the top
REASONS TO USE OUR LEASE/FINANCEING PARTNERS RATHER THAN YOUR OWN BANK
Down Payment Requirements: Our Lease/Financing arrangements allow the Customer to finance 100% of the cost of the equipment and usually only requires one monthly payment to begin the Agreement. This is not always the case with bank financing. Often a sizable Down Payment of 10% or 20% of the equipment cost is required. These Down Payments use up precious working capital that is needed to support daily cash needs. back to the top
Soft Costs: These costs include shipping, training, installation and other expenses associated with equipment acquisitions. We enable our Customers to include these costs in our Lease/Financing arrangements. Banks generally will not finance soft costs. back to the top
Flexible Payment Plans: We offer Seasonal Skip and Deferred Payment Plans which banks usually do not offer. back to the top
Simplicity and Speed: Banks may require complete financial statements and tax returns and their decisions may take weeks. We usually only require a simple Credit Application to arrange financing up to $100,000 and decisions are typically within 24 hours. back to the top
Compensating Balances: Banks may require borrowing Customers to maintain a balance in their business checking account that may equal the size of the loan for the equipment. Your company is tying up cash it may need to support daily operations. Our lending partner does not require compensating balances. back to the top
Floating vs. Fixed Rates: Bank financing may use a floating rate that may increase over the term of Agreement and end up costing more than the fixed rate Agreements used by our lending partner. back to the top
Restrictive Covenant: Banks may require their Customer to periodically submit financial statements to see how your business is doing. The borrowing arrangement may include a call provision that enables the bank to make you pay off the loan if they feel your business is not doing as well as they think it should. Our lending partner’s Agreements do not contain restrictive covenants. back to the top
Blanket Lien: Banks often file a Blanket Lien when doing financing for their Customers. This enables the bank to place a lien on all company assets. This lien is filed as a Public Record. Lease/Financing companies usually only file a UCC-1 financing statement that simply identifies the specific equipment being financed and is the property of Lender until the end of the Lease and the Purchase Option is exercised. Then a UCC-3 statement is filed which releases the Lender�s ownership rights to the Customer. back to the top
About Hayes Trading Co.
Hayes Trading Company offers everything from ramps to cranes, accessories, and hundreds of products in between. Some of the many categories of Hayes products are Boom Lifts and Equipment, Dock Levelers, Dumpers, Hoists, Drum Crushers, Hydraulic Stackers, Machine Rollers, Gantry Cranes, Industrial Drill Sharpeners, Jib Cranes, Pallet Servers, Scissor Lifts, Strapping and Stretch Wrap Machines, Trollies, Yard Ramps (Forklift Ramps) and more., visit www.hayestrading.com.
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