1. In partnership with…
Equipment Sales Professionals
BBeenneeffiittss ooff
EEqquuiippmmeenntt FFiinnaanncciinngg
Equipment Financing as a Sales Tool
2Q / 2014

2. The Benefits of EEqquuiippmmeenntt FFiinnaanncciinngg
Equipment Financing
as a Sales Tool
 8 out of 10 companies finance equipment
 Equipment Financing is a convenient method of
preserving credit lines for working capital rather
than being tied up in capital expenditures
 The use of Equipment Financing can enhance
your sales volumes and help you keep
customers for life

3. The Benefits of EEqquuiippmmeenntt FFiinnaanncciinngg
• Accommodate Budget Restrictions
• 100 per cent Financing
• Ease of Acquisition
• Conserves Working Capital
• Easy Documentation
• Promotes New Equipment at Regular Intervals

4. The Benefits of EEqquuiippmmeenntt FFiinnaanncciinngg
 Offer total support: You can offer one
bundled solution for equipment and
financing, thus simplifying your
customer’s decision
 Overcome price objections: You can
increase sales and enhance profit
margins by offering the monthly payment
as the financing solution
 Control the sale: You maintain control
over the acquisition process by providing
the full equipment and financing package

5. Sell the Monthly Payment
 Rather than quoting an expensive cash price, offer
an attractive monthly payment
 Which would your customer more easily tolerate?
$100,000 vs $2,119
Cash Price
upfront
finance
per month*
*Based on $100,000 X .02119
60-month finance rate factor
TThhee BBeenneeffiittss ooff EEqquuiippmmeenntt FFiinnaanncciinngg
*all rate factors used in this presentation are examples
only. Actual factors may differ.

6. Avoid Equipment Discounting
 Offering monthly payment prevents “sticker shock”
$100,000 vs $2,119
“Make that $98,000
and you have a deal.”
 Avoid discussing the issue of the equipment cash price, and
avoid the necessity of discounting the price to close the sale
 It is easier to close a larger sale, thereby increasing your
revenue and earning potential
“Is that all?
That’s a great
price.”*
*Based on $100,000 X .02119
60-month finance rate factor
TThhee BBeenneeffiittss ooff EEqquuiippmmeenntt FFiinnaanncciinngg
*all rate factors used in this presentation are
examples only. Actual factors may differ.

7. TThhee BBeenneeffiittss ooff EEqquuiippmmeenntt FFiinnaanncciinngg
Sell to Your Customer’s Budget
 A longer term will lower the monthly payment
without reducing the price of the equipment
$3,196
36 months
Based on $100,000 X .03196*
sample finance rate factor
$2,510
48 months
Based on $100,000 X .02510*
sample finance rate factor
$2,11
60 m9onths
Based on $100,000 X .02119*
sample finance rate factor
 Provide your customer with a quote that fits their budget
requirements

A 36 month term is too expensive? Suggest a 48 or 60
month term
*all rate factors used in this presentation are examples only.
Actual factors may differ.

8. Sell to Your Customer’s Budget
 A longer term will give your customer more
equipment for their money
$100,000
$3,196
36 months
Based on .03196
sample finance rate factor
$127,275
$151,988
 Use the suggestion of a longer term to up-size your equipment
proposal
 With term flexibility, you can meet and exceed your customer’s
needs
$3,196
48 months
Based on .02510
sample finance rate factor
$3,196
60 months
Based on .02119
sample finance rate factor
The Benefits of EEqquuiippmmeenntt FFiinnaanncciinngg
*all rate factors used in this presentation are
examples only. Actual factors may differ.

9. The Benefits of EEqquuiippmmeenntt FFiinnaanncciinngg
The Benefits of Equipment
Financing - Recap
 Sell the monthly payment rather than the cash price
 Avoid sticker shock and equipment discounting to
maintain revenue
 Increase sales and revenue through the use of finance
term and payment amount
 Receive fast credit approval and a timely sale to turn
inventory quickly
 Present simple finance documentation
Call Curt MacRae
20 Division St.
Coldwater, MI 49036 888/510-1355 (Ext 11)

10. Now..
Let’s
talk
Muni

11. The Benefits of EEqquuiippmmeenntt FFiinnaanncciinngg
For Municipalities
• Increased purchasing power – Monthly payments may help
keep the lessee within its budgetary constraints
• Acquire equipment from various vendors – A single finance
can allow the municipality to acquire diverse equipment
• Equipment Financing is treated as an operating
expense – lessee may be able to circumvent a budgeting problem / avoid
lengthy appropriation process
• Payments are all inclusive -- can include installation,
maintenance, shipping, training, software
• Finance can be paid off early -- at any time during finance-term
• Flexible payment terms are available -- finances are from
two to five years (or longer for certain situations); payment options include
monthly, quarterly, semi-annual, and annual with the option to defer
payments until the next fiscal year
• No down payments / advance payments required
• Ownership -- at end of term, client owns equipment; w/ no residual

12. The Benefits of EEqquuiippmmeenntt FFiinnaanncciinngg
Municipalities and their Budgets –
The great majority of municipalities implemented new
budgets on July 1,and are ready for another year of serving
their public. Across the board the cities, counties, and
various types of districts are facing reduced revenues and
the need to control their expenses and maintain their cash
reserves. Municipal financing allows them to pay for
needed equipment over time and that is the same benefit
that we have discussed with commercial clients for
decades.

13. Characteristics of Municipal Financing
• Voter approval not needed.-- funding comes from annual operating budget
• finance rates compare favorably to Bond Issues when all costs considered
• Proves effective for terms under 10 years and less than $10 million.
• finance documentation is simpler and faster; staff time and soft costs are minimized.
• No additional fees or reporting requirements.
• Early buyout options are available.
• Finance only what is needed, with the flexibility of choosing the term required
• Expected useful life of financed property matches the term of the finance
Characteristics of Bond Issues
• Need voter approval
• Cost of election and advertising, and issuance measurably affects true borrowing rates
• Appropriate for large issues and for long terms, but may not match capital needs
• Process is slow, consumes staff time and incurs hidden expenses and overhead costs and
commits the municipal entity to fixed payments regardless of local economy cycles
• Costs continue after issuance (Trustee fees, compliance reports, audit and review fees)
• Restricts future bond issues because of covenant restraints
• Often carry prepayment penalties
• Bond term may exceed useful life of equipment.

14. Avoid Equipment Discounting
 Offering monthly payment prevents “sticker shock”
$300,000 vs $5,638
“Make that $290,000
and you have a deal.”
 Avoid discussing the issue of the equipment cash price, and
avoid the necessity of discounting the price to close the sale
 It is easier to close a larger sale, thereby increasing your
revenue and earning potential
“Is that all?
That’s a great
price.”*
*Based on $300,000 X .018793
60-month finance rate factor
TThhee BBeenneeffiittss ooff
EEqquuiippmmeenntt FFiinnaanncciinngg
*all rate factors used in this presentation are
examples only. Actual factors may differ.

15. The Benefits of EEqquuiippmmeenntt FFiinnaanncciinngg
The Benefits of Muni Equipment
Financing
 Sell the monthly payment rather than the cash price
 Avoid sticker shock and equipment discounting to
maintain revenue
 Tailor to municipal budgets and across budget years
 Reduce price negotiation
 Receive fast credit approval and a timely sale to turn
inventory quickly
 Present a total solution for your customer

18. Equipment Financing provides your clients
A TOTAL SOLUTION
 Sell the monthly payment rather than the cash price
 Avoid sticker shock and equipment discounting to
maintain revenue
 Tailor to municipal budgets and across budget years
 Reduce price negotiation
 Receive fast credit approval and a timely sale to turn
inventory quickly
 Present a total solution for your customer
Call Curt MacRae - 888/510-1355 (Ext.11)
cmac@curtisfunding.com

19. THANK
YOU…
from
888.510.1355 (Ext. 11)
www.curtisfunding.com