This document discusses the benefits of leasing equipment as a sales tool. It notes that leasing allows salespeople to overcome budget restrictions, offer 100% financing, simplify acquisition, preserve working capital, and provide possible tax advantages. Leasing also allows salespeople to offer a bundled solution for equipment and financing, overcome price objections by quoting monthly payments instead of prices, and control the sale process. By structuring leases based on a customer's budget through flexible terms, salespeople can increase sales volumes and keep customers over the long term.

1. In partnership with…
Equipment Sales Professionals
Benefits of Leasing
Leasing as a Sales Tool
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2. The Benefits of Leasing
Leasing as a Sales Tool
 8 out of 10 companies lease equipment
 Leasing is a convenient method of
financing, preserving credit lines for
working capital rather than being tied up
in capital expenditures
 The use of leasing can enhance your
sales volumes and help you keep
customers for life

3. The Benefits of Leasing
• Accommodate Budget Restrictions
• 100 per cent Financing
• Ease of Acquisition
• Conserves Working Capital
• Easy Documentation
• Promotes New Equipment at Regular Intervals
• Possible Tax and/or Balance Sheet Advantages

4. The Benefits of Leasing
 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. The Benefits of Leasing
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 Lease
upfront per month*
*Based on $100,000 X .02119
60-month lease rate factor
*all rate factors used in this presentation are examples
only. Actual factors may differ.

6. The Benefits of Leasing
Avoid Equipment Discounting
 Offering monthly payment prevents “sticker shock”
$100,000 vs $2,119
“Make that $98,000 “Is that all?
and you have a deal.” That’s a great
price.”*
*Based on $100,000 X .02119
60-month lease rate factor
 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
*all rate factors used in this presentation are
examples only. Actual factors may differ.

7. The Benefits of Leasing
Sell to Your Customer’s Budget
 A longer lease term will lower the monthly payment
without reducing the price of the equipment
$3,196 $2,510 $2,11
36 months 48 months 9
60 months
Based on $100,000 X .03196* Based on $100,000 X .02510* Based on $100,000 X .02119*
sample lease rate factor sample lease rate factor sample lease 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. The Benefits of Leasing
Sell to Your Customer’s Budget
 A longer lease term will give your customer more
equipment for their money
$100,000 $127,275 $151,988
$3,196 $3,196 $3,196
36 months 48 months 60 months
Based on .03196 Based on .02510 Based on .02119
sample lease rate factor sample lease rate factor sample lease rate factor
 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
*all rate factors used in this presentation are
examples only. Actual factors may differ.

9. The Benefits of Leasing
Leasing KNOW-HOW for Equipment Sales Professionals
The Benefits of Leasing - 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 lease
term and payment amount
 Receive fast credit approval and a timely sale to turn
inventory quickly
 Present simple lease documentation
Call Curt MacRae
20 Division St.
Coldwater, MI 49036 248.238.7214

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11. The Benefits of Leasing
For Municipalities
• Increased purchasing power – Monthly payments may help
keep the lessee within its budgetary constraints
• Acquire equipment from various vendors – A single lease
can allow the municipality to acquire diverse equipment
• Leasing is treated as an operating expense – lessee may
be able to circumvent a budgeting problem / avoid lengthy appropriation
process
• Lease payments are all inclusive -- can include installation,
maintenance, shipping, training, software
• Lease can be paid off early -- at any time during lease-term
• Flexible payment terms are available -- Leases 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 leases – at end of term, lessee owns the equipment;
there is no residual

12. The Benefits of Leasing
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 Lease/Purchase 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 Lease Purchase Financing
• Voter approval not needed.-- funding comes from annual operating budget
• Lease rates compare favorably to Bond Issues when all costs considered
• Proves effective for terms under 10 years and less than $10 million.
• Lease 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 leased property matches the term of the lease
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. The Benefits of Leasing
Avoid Equipment Discounting
 Offering monthly payment prevents “sticker shock”
$300,000 vs $5,638
“Make that $290,000 “Is that all?
and you have a deal.” That’s a great
price.”*
*Based on $300,000 X .018793
60-month lease rate factor
 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
*all rate factors used in this presentation are
examples only. Actual factors may differ.

15. The Benefits of Leasing
Leasing KNOW-HOW for Equipment Sales Professionals
The Benefits of Muni Leasing
 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

17. Leasing 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 - 248.238.7214
cmac@curtisfunding.com

18. THANK
YOU…
from
248.238.7214
www.curtisfunding.com