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Titan’s QuickTrak Lease Programs
Titan Leasing & Financial is proud to offer innovative
financial products to our customers through our QuickTrak Lease Program.
The following is a brief outline of our capabilities in handling a transaction:
·
100% Pre-funding: For all bank-quality credits we can
overnight full payment the same day we receive signed documents from our
clients. No verbal Delivery and Acceptance, no hold up in releasing funds to
your company.
·
Variety: We offer financing for A-D credit customers
including start-up businesses. We feel that working with a customer throughout
the start-up and/or struggling stages of their business will help us to better
understand their business and build a long term relationship with each
individual customer.
·
True Flexibility in Structuring: The businesses we work
with have a full range of equipment lease-finance options available to them. We
are able to customize structure and payment streams to meet our clients’
business objectives, positively impact their balance sheets, and save them
money.
·
Service: Too many companies overlook the most important
parts of doing business. Our customers can expect availability, courtesy, and
follow-up even after a deal is signed and funded. We are always available to
discuss how our products and service can best accommodate you. We believe if
you take care of people, they will come back to do business with you again.
·
Speed: For all bank-quality credits, we typically have same
day approvals. We can fax or e-mail documents to you for signature which
greatly improves turnaround time. There is no need to send original invoices,
just fax them to us.
·
Understanding Your Business: We don’t just ask for
financials and run credit. We take an interest in our clients’ operation and
understand the facts behind the numbers. This has enabled us to offer our
clients better lease-finance options for their businesses. This approach has
also allowed us to offer “A” lease-finance deals to some businesses that usually
must accept more costly equipment finance options.
·
Competitive Rates: We have competitive interest rates
determined by both the size and strength of each individual transaction.
Effective rates may start below prime for operating leases.
Our goal is to provide your
company with cost-effective solutions to purchase equipment. Please take a
moment to look at the following material. If you have questions, special
circumstances, or would just like to discuss options before applying, please
contact us.
EQUIPMENT
ACQUISITION THROUGH LEASING
Benefits of Leasing
As an alternative source of
funds, leasing preserves existing bank lines of credit which should be utilized
for short-term needs such as cash, payroll, inventory, etc.
Leasing conserves working capital by providing 100% financing.
Leased equipment is paid for through earnings rather than equity within the
company.
Interest rates are fixed so that unattractive, modulating rates can be avoided.
Leasing is more flexible concerning the term, amount financed and payment
structure.
Because payments are a fixed cost, budgeting and planning are simplified for the
business owner.
Maximize Your
Cash Flow
Titan’s QuickTrak Lease requires less initial investment than traditional bank
financing – a typical first payment is about 2% of the equipment cost.
Additionally, we offer custom payment structuring and options, which increase
the cash flow your equipment provides and allow your business to pay only for
the portion of the asset that is utilized. The bottom line: invest less of your
money in the equipment and still earn more cash return from operating it. That
is smart business.
Optimize Your Tax Savings And Improve Your Balance Sheet
With our QuickTrak Lease you can realize substantial tax savings by either
depreciating the equipment or writing off all of your payments as a business
expense (consult your accountant). Only leasing offers the opportunity to show
equipment payments as an expense, and this can significantly improve the
strength of your balance sheet and may improve key financial ratios for your
company.
Collateral Is Limited To The Equipment Leased
Why tie-up your fixed assets or personal property in order to secure bank
financing for your equipment? The equipment itself is the only collateral
through our QuickTrak Lease - no need to risk additional property. Lease assets
that depreciate in value, buy assets that appreciate. Do not pledge fixed assets
including land, for shorter term assets such as equipment.
Cover All Of Your Costs
The QuickTrak Lease makes it possible for you to lease-finance all of the
equipment and any modifications, or other related expenses. Cover trucks, booms,
backhoes, and loaders (to name a few) as well as any delivery costs,
installation, or even training costs that will get your equipment up and running
smoothly. We can also include sales tax in your lease.
Make It Easier To Do Business
At Titan Leasing & Financial, we make it easier for you to do business by
offering you clear choices, a simple application & funding process, and straight
talk.
• We have application only approvals (up to $75,000) within 24 hours of
receiving an application.
• Once your request is approved, we can offer you a number of different
lease-finance options and consult with you as to how they will affect your
business.
• Our documents are clear and straightforward. They will be sent via overnight
delivery, e-mail, or fax.
• The same day we receive signed documents from you we can overnight or wire
funds to the desired account or address.
Expect availability, courtesy and follow-up from our lease-finance
specialists. We believe if you take care of people, they will come back to do
business with you again
Leasing Options
q
$1 Out
This is a capital lease or
lease-finance. The end of term residual is fixed at $1.00, which allows the
customer to depreciate the equipment cost for tax purposes. The
structure and tax benefits are very similar to that of a finance deal, except
that with the $1 Out Lease the borrower is typically getting a 100% coverage of
the equipment cost, shipping, dealer prep costs, and any applicable taxes.
q
10%
Residual
This is a lease with a fixed residual
purchase option. This structure is similar to the $1 Out Lease except that 10%
of the equipment cost is not due until the end of the term. An advantage of
carrying equipment with a 10% Residual is the lower monthly payment which
increases cash flow from operating the equipment. The customer can depreciate
the equipment cost for tax purposes, or possibly write-off monthly payments as a
rental expense for tax purposes (consult your accountant).
q
20%
Residual
This is a lease with a fixed residual
purchase option. Twenty-percent (20%) of the equipment cost is held-over and
not due until the end of the term, at which time the borrower can pay the
residual amount in full, extend the term (re-approval of credit required), or
sell the equipment and net the difference between sale amount and residual. The
customer can either depreciate equipment or qualify this as an operating lease
(consult your accountant). The amount borrowed can be kept off-balance sheet
and not shown as long-term debt. Monthly savings/cash flow from equipment
operation is even greater with a 20% Residual lease than a 10% Residual or $1
Out lease.
q
PRO Lease
The PRO or Purchase Renewal Option
Lease is a true lease where depreciation savings are passed along to the
customer in the form of a lower payment and a lower effective interest rate.
The borrower has the right to expense payments for tax purposes. The amount
borrowed does not show as long term debt on the company balance sheet, which can
improve a company’s financial ratios. The residual option to purchase is
calculated as a 10% Residual or Fair Market Value, whichever is greater.
q
TRAC Lease
The TRAC (Terminal Rental Adjustment
Clause) Lease is a true lease reserved for titled equipment and self-propelled,
motorized equipment including any attachments. Trucks, backhoes, excavators,
and similar equipment are eligible for lower pricing and lower effective
interest rates under a TRAC Lease. There are no mileage or usage restrictions,
and the customer has the option to return the equipment at the end of the term,
purchase the equipment for its then Fair Market Value (determined by the
customer and the bank), extend the term (re-approval of credit required), or
sell the equipment and net the difference between the sale amount and the
pay-off amount.
q
EFA
The EFA or Equipment Finance Agreement
allows the customer to finance equipment with all of the benefits and
responsibilities of ownership. However, unlike traditional bank financing,
EFA’s do not require the typical 20% customer down payment. Instead they
are structured similar to a lease finance, where minimal upfront payment is
required and 100% of the equipment cost, shipping, dealer prep costs, and any
applicable taxes are covered in the deal. EFA’s may be fully amortized or
structured with a balloon payment.
q
Master
Lease
Customers seeking to purchase multiple
pieces of equipment over a certain time period benefit greatly by carrying the
equipment on a Master Lease Agreement. A customer can contract for a larger
approval amount and draw down on the total approval to cover individual pieces
of equipment over time. By contracting for a larger dollar figure, a borrower
can realize substantial savings on the cost of money while having funds
available for equipment purchase. Each purchase can be tied into one payment
schedule.
q
Custom
Payment Structuring
§
Monthly/Quarterly/Annual Payments
§
Purchase Options: $1 Out, 10%, 20%, FMV Residuals not only
influence your interest rate and monthly payment, but allow you to take
advantage of the tax benefits of leasing. You can also capitalize on the
frequency of equipment turnover your business experiences.
§
Seasonal Payment Plans: Customer selects up to three months
of skip payments per year, nine months with regular payments. Preserve your
working capital during seasonal changes in business.
§
Zero Down: No up-front money required allows for a true
100% finance. Your equipment can start to pay for itself before you start to
pay for it – on credit approval.
§
Balloon Payments: Adjust the size and timing of your
payments with the addition of one or more balloon payments.
§
Step Up Plan: Customer wants payments lowered to a fraction
of the typical payment at some point during the term. This is for a minimum
capital commitment during a specified time period.
§
100% Pre-Funding Available: For example, if equipment is
being built, shipped, or modified and up-front payment is required for work to
begin. At your request, we will fund up to 100% of the amount you finance to
the vendor doing the work.
§
Custom Plan: If you require some other specific options, we
will work with you to meet your needs.
All Lease Structures and
Options listed above made available upon approved credit only and determined on
a deal-by-deal basis.
Credit Application Requirements
q
Transactions up to $75,000
1.
Completed Application
q
Transactions over $75,000 for Proprietorships
1.
Completed Application
2.
Personal Financial Statement – owner
3.
Last 2 years Personal Tax Returns – owner
4.
Current Interim Financial Statement for
the company (if tax returns over 6 months old
q
Transactions over $75,000 for Partnerships
1.
Completed Application
2.
Last 2 years Company Tax Returns or
Audited or Reviewed Financial Statements
3. Current Interim Financial
Statement for the company (if tax returns over 6 months old)
4. Personal Financial Statement –
each partner with 20% or greater stake in company
5. Last 2 years Personal Tax
Returns - each partner with 20% or greater stake in company
q
Transactions over $75,000 for Corporations
1.
Completed Application
2.
Last 2 years Corporate Tax Returns or
Audited or Reviewed Financial Statements
3.
Current Interim Financial Statement for
the company (if tax returns over 6 months old)
4.
Last 2 years Personal Tax Returns –
individuals with 20% or greater ownership position
5.
Personal Financial Statement -
individuals with 20% or greater ownership position
q
Corporation Only Transactions
1.
Reserved for businesses incorporated 5
years or more.
2.
Satisfactory credit strength.
3.
Proven financial track record.
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