Up dated and Additional Information
WE DO MORE THAN JUST SERVICE CONTRACTS!
If you have read the prior articles you know that the Contract Financing product has a few basic, and necessary, components, and they need to there to be successful putting a contact financing deal together. The ingredients are: investment-grade end user, stipulated minimum payments and equipment required for performance. The end user must see a distinct need and advantage to consider Contract Financing. Now, we can turn our focus to where these elements can be applied in Contract Financing. Service Contracts, where a vendor or service provider needs equipment, and sometimes working capital, to fulfill their contract to provide some type of unique service to their customer, are the most common source for Contract Finance. However, we also extend this product into other contracts as well; for example, Distribution Agreements, Production Contracts and Power Savings Sharing Agreements – to name a few – are also viable sources for Contract Financing. Even with these different types of contracts, the basic components remain the same. The end user is still an investment-grade company; there will still be a minimum payment or quantity supplied; and there is still equipment necessary to fulfill the contractual obligation. Asking the appropriate questions will help to indentify your customer as a candidate for this program, even when they have a contract that is not a traditional Service Contract.
If you are willing to ask some additional questions, we are able to assist you and your customers with their Contract Financing needs. A missed opportunity is always taken by somebody else who knows how to ask and is capable of listening. Keep in mind the majority of our customers, meaning the supplier, are not bankable credits, so always ask why they need the equipment and or software…
Contact your Insta Lease representative today to learn even more about our Contract Financing product and how to never miss another opportunity.
Recap—3 Necessary Ingredients for Success!
- Investment-grade end user.
- Stipulated and agreed upon minimum payments and equipment for performance.
- The end user MUST see a distinct need and advantage to consider Contract Financing.
If you have something that is close to the above model contact us. We may be able to help.