Vendor Leasing
 


Vendor leasing programs are either formal or informal financing arrangements created to support the marketing efforts of equipment vendors. Leasing is a sales, marketing and financing tool utilized to enhance a company's profitability. These financing programs enable equipment vendors to offer to their customers a convenient way to acquire their product at the point of sale. LTI's vendor leasing programs offer a variety of lease options, giving the prospective customer options to meet its financial and/or usage needs. Leasing alternatives offered often include:


1) Short-term rentals
2) Operating Leases
3) Lease terms from 24 to 60 months
4) Fixed or fair market value end-of-lease buyouts


Vendor leasing programs target manufacturers of commercially viable equipment. These programs make the manufacturers' products more accessible to their consumers. Working closely with the vendor's sales force and senior management, LTI designs a set of lease offerings appropriate and desirable to the specific vendor's clientele.


LTI's Vendor Leasing Division targets equipment manufacturers selling their products directly to end-users, offering the end-user a convenient financing option at the point of sale. We focus on companies in the technology, communications, software, medical, security and energy related industries with:


1) Annual sales volume between $ 3.0 and $ 50.0 million
2) A business track record of at least three years
3) Lease volume anticipated in excess of $1.0 million annually


Under LTI's vendor lease programs, minimum lease transaction sizes are typically $25,000. Short-term rental options ranging from 90 days to 18 months can be offered. LTI also offers lease terms from 24 months to 60 months. Depending on the needs of the vendor's customers and the preference of the vendor, either fair market value or fixed end-of-lease options may be offered in the program. Equipment types and credit criteria are consistent with those of LTI's other lines of business.


Q: What kind of vendors can benefit from a program with LTI Vendor Finance?
A: a) Large vendors whose market, in part, consists of emerging growth customers or other “unique situation” customers that do not meet typical funding requirements.

b) Small vendors who need to offer risk reducing alternatives to their prospects and customers i.e. rental programs, operating leases, "try before you buy" arrangements, etc.

Q: What size transactions does LTI Vendor Finance do?
A: Individual lease closings should be for a $25,000 minimum. Maximum exposure per lessee should be $500,000 (more if syndicated), lease volume per vendor ideally should be $2-15 million per year - with other program sizes considered on an individual basis.

Q: Is the equipment which is the subject of the vendor program important? Can the vendor share in the residual value?
A: Yes, the equipment is important, not only for its collateral value but also for it's residual value. We are happy to have the vendor be our remarketing agent and share in the residual value upside.

If you are an equipment vendor and would like more information about offering leasing to your customers as a convenient way to acquire equipment....click below