eLease Equipment Leasing

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!

4th of the July was a much needed vacation for many entrepreneurs across this great country of ours.  I truly appreciate the 4th of July for many reasons but mainly it is the birth of this great country of ours.  Happy 232!  With all the negative information in the news you would think this lady of hope was having a tough go of it the last 2 years but in the big picture of who and what we are as a people and the ideals we stand for it is simply  a bad day in her lifespan as America.  Life a short lived cold or a housing hangover we will get over it.  Just like many darker days in America.  The glass is always half full for those of us who drink the Coolaid of Free Enterprise and freedom.

Sure the economy is a bit rocky right now but I am sure Uncle Sam will find a way out!!  I was kidding but it seems Mr. Obama and Mr. McCain to the rescue!!!  Industry and the American spirit has always been the light in the dark tunnel and that light tends to come from entrepreneurs finding ways to capitalize on difficult times.  So happy belated birthday to Lady Liberty and to business owners over the US.  I hope you had a great 3 day weekend but it is now time to get back to work.  (If you did take the 3 days off)  You can have another day next Month!

I think back to 9/11 and the gas crisis of the seventies and the Vietnam war in my lifetime.Â

Sometimes the largest personal asset an entrepreneur has does not sit on the company balance sheet which is personal credit. Personal credit is usually reviewed first at the Bank they choose to open their business account and it continues from there with the land lord for the business wanting a signed credit application with your SSN.

Your business depends on your personal credit. It is your ability to gain credit for your business which is why it must be reviewed and protected. As a lender our banks review my personal credit on an annual basis which means I need to make sure my credit is protected. When I did my annual review of my credit I saw an account I don’t remember signing up for which was not being used but I had no recollection of applying for this account. I decided at that point to partner with a company, Lifelock, to protect my credit.

Lifelock www.lifelock.com provides a million of insurance for identity theft. I look at it like insurance on the business. How could I not protect my biggest personal asset for my credit. What if my identity was stolen? What would happen to my credit and more importantly what would happen to our relationships with our banks? The scenario almost made me sick to my stomach. I feel much better that I don’t have to worry about that for $10.00 per month!

Here is their info:

About LifeLock

LifeLock is the industry leader in the rapidly growing field of Identity Theft Protection. We are based in Tempe, Arizona. Our company is led by experienced and successful entrepreneurs and industry experts. We are backed by Bessemer Venture Partners, one of the leading venture capital firms in the world. We serve tens of thousands of consumers in every state of the union, Puerto Rico and the US Virgin Islands. Take a moment to browse and learn about the team that will work for you.

Used equipment is an excellent way to take advantage of leasing or financing. We recently financed a used 2000 Peterbilt truck for a customer that is a great example of how to make the most out of limited capital.

To begin with, the used truck cost 40% less than a new truck. That is a big savings, even before they calculated how much less they would have to pay upfront by breaking up the payments over a couple of years. We were also able to finance the additional 200,000-mile warranty for the truck. This gave the customer the piece of mind that if anything went wrong with the truck it would be covered in their monthly payment.

There are a couple of things to remember when choosing a piece of used equipment. First make sure the equipment is in good working condition. A lot of companies will lease a piece of used equipment that is exactly like equipment they already own. Smart move.  That way they already know how to operate the equipment and will have a maintenance plan in place to keep the equipment in good working order.

When ever possible get a warrantee. If a warrantee is not offered, which is usually the case with used equipment, take the time to get the equipment looked at by a trained professional to make sure there are no hidden problems an untrained couldn’t see. Particularly when you are leasing the equipment, it is worth the minimal extra cost to ensure you have a good piece of equipment that will last the term of the lease.

eLease is able to finance all kinds of used equipment and recently we expanded our offerings to allow used equipment to be leased regardless of the age of the equipment.  eLease most frequently leases titled vehicles, furniture and fixtures, printing equipment, metal working equipment and others.

In my opinion, there are only two seasons in the snow industry: ski season and preparing for ski season. In the off-season critical decisions are made regarding investments in equipment and capital improvements that are needed to maximize the experience of guests, stay competitive in the marketplace, and upgrade to newer technology. Of course these decisions need to be implemented before the mountain is in its high revenue cycle and cash flow positive.

Ski business or not, the goal of any company is always to maximize cash flow and to match the timing of lease payments with the income being generated by your business and its new equipment. Seasonal trends are common in several sectors including consumer electronics, hotels, restaurants and department stores.

eLease has developed a Snow Resort Financing Program that provides the convenience of seasonal payments, which are ONLY due during when the mountain’s busy season. By matching the payment with the revenue cycle we can maximize your cash flow during the off-season and avoid negative cash flow on equipment. Additionally, seasonal payments give you the advantage of getting a jump on the season. You’ll have your new equipment delivered, installed, and tested months before your first payment is due.

The benefits of leasing equipment become crystal clear when your equipment payment is tied to the revenue stream of your business. I’m not telling you anything new, but traditional financing that requires payments 12 months of the year throughout the term of the lease can be a heavy burden on seasonal businesses. Particularly when you generate nearly 100% of revenue within a 5-month period.

If you’re interested in learning more about our Snow Resort Financing Program or are curious to find out what your monthly payments would be on a snow making purchase, please feel free to contact me. We’d really like to help. Thanks for your interest and have a great season.