[jfeinberg]

All good points. We like to give our clients all options that they might qualify for. My sales reps are trained to be able to discuss equipment leasing, factoring, PO Funding, and all MCA related products. Keep in mind that "equipment financing" is a very broad term. My clients are the first to tell me that a straight lease deal can require a hefty down payment upfront, tricky appraisal/underwriting process, and can ultimately carry a total cost of 30%-40% more than the sales price of the equipment when all is said and done after 2-5 years. In addition often the merchant needs to make a hefty buy-out payment in order to actually own the equipment at the end of the term. Some of our clients have told us that they would rather pay the equipment down with an MCA product over 6-12 months and then have an ASSET on their books rather than a LIABILITY for 2-5 years. Alternatively, equip financing products have nice low monthly payments which is always a cash flow benefit. If you explain all the pros and cons to your clients they have no need to ever go anywhere else for their financing needs!

All very true. However with our "straight lease" which is classified as a Fair Market Value lease is the program they want to go with to take advantage of the off balance sheet product. The equipment will not be looked at as a asset or a liability, in turn will be looked at as an expense. This can be truly beneficial for instance if there are certain restrictions with their bank, or they do not want to show any more liability's. Also they are able to write off every payment. As far as down payment, most of the time we only require 2 upfront payments. They are not required to purchase the piece at the end, and can lease or finance a newer model.