eLease Equipment Leasing

Everywhere on the news talks about small business lending recovering but from my vantage point more and more banks are abandoning small business and moving to the 5 million plus space.  There is surely less demand out there but for the small business that needs a loan/lease there are few options and FASB looking to change mark to market is very scary.We had our banker in our office today and we spoke about the Accounting lobbyists and what it means for our space.  I am very concerned this is 1933 all over again.  A major lender is abandoning the small business space and 3rd party originations which is US Bancorp.  They are the nations 3rd largest bank, took TARP, and are leaving entrepreneurs abandoned.I have not been writing the last few months but will become very vocal about my views on entrepreneurs, lending, and the America I love.

If you are  an entrepreneur which has managed to survive and even thrive in this market I applaud you.  I do believe this is the worst economic cycle I have lived through and will most likely be one of the worst for our country.  I also believe we are turning the corner in this economy but not for the same reasons Wall Street points to.I have long believed small business is the engine and the backbone of this country and these business’s do much of the heavy lifting in this world.  I have had the pleasure to talk with many brand new entrepreneurs who are looking to change the world and have a new sense of vigor and courage that some of us might have lost after the last 2 years or so.  For my industry specifically it is apparent that the shine has worn off the penny and work became less fun and painful at times.In dealing with these newly minted entrepreneurs I am refreshed and enlightened about this concept called Capitalism in this place called America.  I would never bet against this economy and our way our life because there are too many smart people creating new opportunities and it is ingrained in our culture to create value and opportunities.  For that reason I think the recession is over.  There are so many people capitalizing on opportunities and inefficiencies in the market place.I fear has always falls back to the people in Washington who we elect.  I would really like to see some tax incentives for REAL small business’s under 20 employees to start getting some people back to work and return to some sustained level of growth.  These companies are the real engine of growth and and creating real jobs.On the leasing side credit is still excruciatingly tight but not impossible.  We lend in the new normal of what small business lending has become.  Things get done because both parties want to succeed as they always have and always will.  Some things never change.

Greetings Entrepreneurs,

Today I got sad news that my corporate credit card was being cancelled from Advanta Business Card.  The Card had a a 50K limit and it was the card that I issued to key employees for purchasing.  Although we tended to use the card and pay it off monthly I thought about the small business owner that relied on this card exclusively in tough times to meet cash flow needs.

Advanta was a great company and even owned a leasing company which later became Marlin Leasing.  This is their final exit off the business stage and unfortunately might take a few hundred small business’s with them.

I am hearing almost daily on long established lines of credits being cancelled or a minimum being reduced.  Are we all having fun yet?

eLease is hosting a one hour Webinar for Sales People to better understand equipment and how to sell financing in todays economy.  Please email me if you are interested in attending.  We are limiting the people to 50 and will most likely do this every 2 weeks.

Thanks,

Tom

We finished our First Vendor Boot Camp yesterday and had some great feedback.  This was the first time this seminar was put on so I am excited to see the attendees got a tremendous amount of value out of the 4 hours. 

 The main interest was:

 Pricing and Proposals

Benefits of leasing

How to incorporate leasing into their sales process

This was the first of many.  If anyone is interested please shoot me an email and I can let you know about upcoming events.

BNI (Business Network International on web at www.bni.com) is an international networking organization with has over 8000 chapters worldwide and half a million members.   I have been a member of BNI in San Francisco and also in St Petersburg for the last 5 years and have found it a very efficient way to gain referrals and find new customers.

 For any small business trying to find new business and also create more awareness there is no better format than BNI.  In tough markets it is hard to stretch marketing dollars and BNI only costs a a few hundred dollars a year and you get a good meal.

 BNI also provides an excellent format to tell people about your business.  eLease has found some great vendors through this word of mouth marketing so find a chapter and see it work for yourself.

 Congratulations President-Elect Obama!

With the information overload of the bailout I thought this was very interesting.  I saw this on the National Association of Equipment Lease Brokers site www.naelb.com and I thought it was very relevent to small business owners to give the government perspective. 

How many zeros in a billion?
This is too true to be funny. The next time you hear a politician use the
word ‘billion’ in a casual manner, think about
whether you want the ‘politicians’ spending
YOUR tax money. A billion is a difficult number to comprehend,
but one advertising agency did a good job of
putting that figure into some perspective in
one of it’s releases.
A.

A billion seconds ago it was 1959.B.
A billion minutes ago Jesus was alive .C.

A billion hours ago our ancestors were
living in the Stone Age.D.
A billion days ago no-one walked on the earth on two feet.E.
A billion dollars ago was only
8 hours and 20 minutes,
at the rate our government

is spending it.

While this thought is still fresh in our brain…
let’s take a look at New Orleans …
It’s amazing what you can learn with some simple division.
Louisiana Senator,
Mary Landrieu (D)
is presently asking Congress for
250 BILLION DOLLARS
to rebuild New Orleans . Interesting number…
what does it mean?A.

Well… if you are one of the 484,674 residents of New Orleans
(every man, woman, and child)
you each get $516,528. B.
Or… if you have one of the 188,251 homes in New Orleans, your home gets $1,329,787.C.

Or… if you are a family of four…
your family gets $2,066,012.Washington , D. C

< HELLO! >
Are all your calculators broken?? Accounts Receivable Tax
Building Permit Tax
CDL License Tax
Cigarette Tax

Corporate Income Tax
Dog License Tax
Federal Income Tax < BR>Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax
Hunting License Tax
Inh erit ance Tax
Inventory Tax
IRS Interest Charges (tax on top of tax)
IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Tax
Marriage License Tax
Medicare Tax
Property Tax
Real Estate Tax
Service charge taxes
Social Security Tax
Road Usage Tax (Truckers)
Sales Taxes
Recreational Vehicle Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge Tax
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Non-recurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Tax
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax STILL THINK THIS IS FUNNY? Not one of these taxes existed 100 years ago..
and our nation was the most prosperous in the world.

We had absolutely no national debt…
We had the largest middle class in the world…
and Mom stayed home to raise the kids. What happened?

Can you spell ‘politicians!’ And I still have to
press ‘1′
for English.

Why are so many businesses installing surveillance systems in their offices? The main reason is TO SAVE MONEY. Companies that invest in surveillance equipment are likely to save money in a number of ways:
Insurance (workers comp) - Every year American businesses pay out millions if not billions of dollars to their employees for workers compensation for accidents that aren’t work related. Employment law in the United States heavily favors the employee and for good reason. But without a way to prove your employee wasn’t hurt on the job, businesses are extremely vulnerable to abuses of the system. By installing surveillance cameras companies can monitor their stores, production lines or any work place and have photographic evidence of specific injuries or accidents. Additionally, by seeing accidents first hand, business owners can take preventative measures to minimize future injuries.

Theft - All businesses have problems with theft from grocery stores to banks. By installing surveillance cameras not only can you abate theft from outsiders, but you can curb internal theft.

Productivity - Wonder what your employees are doing all day? With surveillance cameras you can track productivity of your workers and work on improving the efficiency of your business.

The other reason companies get a surveillance system for their business is to have PEACE OF MIND.

Internet Viewable - Surveillance systems today allow the business owner to
view their business operations from another location. The owner could be on a business trip in China and still keep an eye on his business.

Multiple Locations - Some business owners have more than one location and can only be present at one location at a time. With security cameras, owners can monitor locations simultaneously.

No how do business owners pay for their new surveillance system?

There are many different ways to pay for equipment for your business. The first and most obvious is paying cash. Not all business owners have the budget to pay cash for a surveillance system. This brings us to financing:

Financing your security system is a great way to acquire your equipment without having to seriously impact your cash flow. Traditional loans with banks can be good when considering an interest rate. You will typically have to put down anywhere from 10%– 20%. Along with the hefty down payment, banks place a blanket lien on all company assets.

What if a business owner could get that brand new surveillance system to save money in the long run and for peace of mind at the same time not giving up interest in assets or having to put down a bunch of money? Equipment leasing is the solution. Equipment leasing is a way to finance your surveillance system 100% only having to put down the first and last payment upfront. The leasing company only holds a lien on the particular equipment you are acquiring not all assets of the company.

The top 5 reasons to lease the new surveillance system:

1. Cash Flow - Making monthly payments are much easier than coming out of pocket thousands of dollars. Let the equipment pay for itself instead of waiting years before you break-even.
2. Low Down Payment (100% financing) - Paying your first and last payment upfront is much easier than having to come out of pocket 10% or 20% for a traditional loan from a bank.
3. Service contracts for the surveillance system can be bundled into a lease so you have one low monthly payment.
4. Upgrading - Adding equipment to your lease agreement is extremely easy. All it takes is a one-page contract added to the original agreement.
5. Leasing allows “Up Selling” - Having a leasing company pay for equipment allows customers to get EVERYTHING that they need without having to take certain items out because they can not afford them. Adding additional equipment to the lease will not change the monthly payment significantly allowing it to stay within customers’ budget.

Leasing and Financing of CRM software is a perfect way to capitalize on getting a custom solution for your business without the huge outlay of cash.  Proactive technology lessors like eLease will provide your company the ability to finance not only the license for the Software such as Microsoft CRM, Goldmine, ACT, and Sales Logix for example but also 100% of the installation and customization of the software.

Software is only as good as the customization that adapts it to fully automate your business.  The money is well spent on finding a solution provider who can tailor the software to your needs.  It can a long time to great even on implementing software but with Leasing you have positive ROI within 30 days.  Leasing just doesn’t make cents it makes real dollars in terms of savings and creating new opportunities. 

Let us know if you have a unique software package you need for your new business.

It has long been said that if you live long enough you will see everything.  That is never more true than in the realm of small business.  Last year I bought a new boat before the gas was $5.25 on the water which it is today.  I told the sellers broker that I financed small business’s equipment.  A year almost to the day he called me and asked if I might be able to finance his friends business which a boat club franchise.  It is especially gratifying to finance equipment you love and I love boats.

Although we had not financed any boats in the past I was hopefully optimistic we could put the financing together at eLease.  When I learned more about the business and the insurance they needed to carry to operate the club I was very impressed and felt comfortable with the financing.  We structured a 36 month Equipment Finance Agreement which would allow them to payoff early and also gave them true ownership in the equipment which protects us in case of one of their members gets in an accident.  So in the end the situation was win win. 

 I especially like to finance different equipment because you learn so much about the equipment.  See you on the water!