HAVE TO SEE TO BELIEVE
2017 - $1.06 Trillion of Equipment Financed
Your Biggest Opportunity
$646 Billion
via Lease
(61%)
$414 Billion via
Bank Financing
(39%)
Equipment Leasing and Finance Association
Who (currently) Offers Leasing?
➢Out-of-pocket expense
➢Accountant / CFO recommendation
➢Vendors CONTROL how it’s financed
Do your customers even KNOW you finance equipment?
Why Customers Lease
The True Cost of Convenience
22%
17%
Vendor Representation
Customer Reality
Vendor Representation
Customer Reality
The True Cost of Convenience
21%
Do You Know…
What percentage of
businesses lease
equipment?
80%+ of your
customers and
prospects acquire
equipment through
leasing
--FDIC, SBA & ELFA reports
Good News /Bad News
…with someone else!!
A “Bragworthy” Customer
“Bragworthy”…
Lab
Equipment
Lab
Equipment
Tissue Testing
Equipment
Scanning
Equipment
Microscopes
Testing
Equipment
Lab
Equipment
RE & Commercial Lending
But For Whom???
28 Equipment Lease Loans
Truly Bragworthy
$12.8MM over 10 years for a Restaurant Franchisee
2 Equipment Lease Loans $ 9.9MM over 2 years for an Ag Grower
3 Equipment Lease Loans $ 2.7MM over 1½ years for a Tile Manufacturer
19 Equipment Lease Loans $10.4MM over 8 years for a Dental/Pharma University
Customer Relationships Which Are “Truly Bragworthy”
Do you know…
What percentage of
business owners
contact their bank
prior to financing
equipment?
A recent industry
survey found that 95%
of businesses don’t
think of their bank
when financing
equipment
--Leasing News
Appalling…
Differentiate Yourself – Offer Options
For every equipment
financing
opportunity offer
your customer a loan
and a Lease option
What is a Lease?
It’s the OTHER way to finance equipment
Equipment Financing
Loan Lease
There are Basically (2) Types of Leases
1. Capital Lease
-Finance Lease
-$1 Buyout / $101 Buyout
-Fixed Price Purchase Option
2. Residual Lease
-Fair Market Value “FMV”
-True Lease
-Operating Lease
Start your own leasing department
- or -
Refer customers to another
bank/3rd party
- or -
Work with a company like
BancLeasing
Options Banks Have to Capture
Leasing Opportunities
Your Bank…
• Sets the yield and makes the credit decision
• Finances business essential equipment
• Receives the payments
• Maintains perfected security interest in the
equipment
• Has no residual risk
Let’s Discuss Working with a Company
like BancLeasing
Just Like A Loan…
Lessor handles all of the lease and loan documentation including invoicing
• You control the credit
decision (i.e., any/all
credit enhancements,
etc.)
• You have security
interest in the
equipment• Once paid in full, note is fully amortized
with no residual risk
• You earn interest and fee income
Bank books a LOAN!It’s a lease for your customer, and a lease for us (BancLeasing),
but it is a loan for your bank
Bottom Line…It’s a Loan for your bank
Automotive Repair and Testing Automotive Paint Booths
Restaurant FF&E
Packaging Equipment Lines
Exhibit/Display Booths
Broadcasting Equipment
Video Conferencing Equipment
Health Club Equipment
Playground Equipment
Office FF&E
Refrigeration Equipment
Service Station Equipment
Hotel FF&E
Hydraulic Lifts
Mailing and Sorting Equipment
Mining Equipment
Recording, Stage, Lighting and Audio
Systems
Does Your Bank Have Customers With Any
of This Business Essential Equipment?
Hospital, Surgery Center, Medical/Dental
Computer Hardware and SoftwareConstruction EquipmentMachine Shop/Machine Tool EquipmentPoint of Sale EquipmentPrinting, Embossing, Embroidery Injection Molding Equipment
Telephone SystemsRetail Store FixturesEnergy Management SystemsA/C And Heating Lighting SystemsSignageWarehouse RackingForkliftsOil Field EquipmentAgricultural and Irrigation EquipmentAir Compressors/GeneratorsGolf Course Maintenance Equipment
Food Preparation / Meat Processing Equipment
Identifying Opportunity
Referrals
--existing customers
--centers of influence
UCC searches
Recent news articles/stories
Understanding the Opportunity
What is your customer’s CAPEX budget for this year?
What equipment is business essential?
How has the business paid for equipment in the past & why?
--Cash
--Traditional bank financing
--Vendor financing
Ask for the business!
How to Qualify a Leasing Prospect
➢ Are they currently financing any equipment?
➢ Have they been offered both options (loan and lease) before determining what is best for their business?
➢ If they were to learn that your bank is able to offer both a loan and lease option to finance equipment -would they allow your bank to compete for and earn their business?
• More income with
increased loan growth
Fantastic Impact
Lease or Loan…
You Win and Your
Customers Win!
• Additional wallet share with your better to best
customers
• Protecting hard-earned customer relationships
from your competitors
➢ Ownership / Power over Collateral
➢ Early Buyout / Payoff Protection
➢ Administrative Cost Savings
➢ Levels the Playing Field
Lease Advantages --- Bank
WHY NOT JUST OFFER MY CUSTOMER A 100%
LOAN?
Customer:
❖ Finance the total solution including delivery and installation
❖ Sales taxes collected on rental stream
❖ Depreciation can be taken over lease term vs useful life
Bank:
❖ Bank has ownership rights through assignment of the lease
❖ BancLeasing handles all administration and servicing of the lease
“BancLeasing provides our relationship
managers with the tools and confidence to
know that our customers are financing their
equipment with us.”
Jay Lewis
SVP, Washington Trust Bank, WA
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