Leases | Loans | Lines of Credit | A/R Financing

Merchant Processing | Residential Mortgages

 

 

Leases

We offer a variety of leasing options to enable you and your company to obtain the equipment you need to grow. We can structure the following lease types:

Lease Purchase/Capital Lease/$1-out - This is by far the most common lease structure available. This plan allows you to buy the equipment at the end of the lease term for a nominal amount of $1. For most companies that intend to keep the equipment at the end of the lease, this is the best option. In essence, you are building "equity" in the equipment, so you can also sell the equipment at the end of the lease or trade it in for the latest technology. This is most similar to a bank loan, although the money down is typically between 0-4% rather than typical bank requirements of 10-20%.

Operating Lease/Fair Market Value - This structure provides you with the option to purchase the equipment at the end of the lease for its Fair Market Value at that time, continue leasing the equipment based on its Fair Market Value, or return the equipment. The payment during the term is lower than on a lease purchase, but the cost at the end of the lease is higher. In most cases, there is a "cap" on the Fair Market Value of 10% of the original cost of the equipment.

The IRS does not consider an operating lease to be a purchase, but rather a tax-deductable overhead expense. Therefore, you can deduct the lease payments from your corporate income.

Because an operating lease is not considered a long-term debt or liability, it does not appear as debt on your financial statement, thus making you more attractive to traditional lenders when you need them.

Defferred payment - This program is attractive to companies in which the equipment will be used for a project that won't generate revenue for a short period of time, possibly three to six months. The lease is structured so that the initial months have nominal or no payments.

Seasonal payment - This program is designed for those businesses with seasonal cash flows. We can design a lease where you have lower, or no payments, during a 'cash poor' season in your operating cycle.

Step Up/Step Down payment - This can be structured so that lease payments can be set up to match a company's cash flow needs. Payments can start low and then increase during the later years of the lease, or payments can start high and then decrease, minimizing finance charges.

Municipal Lease
This program is available to all city and state agencies such as public school districts, municipal hospitals, police and fire departments. Due to the tax exempt status of the Lessee, rates are much lower than standard commercial rates.

Loans

We not only provide leasing options and working capital services, but also term-debt loans. We can help you finance real estate, equipment debt, or even refinance bank notes. We offer bank-competitive rates and usually more advanced structures than traditional funding sources. We have access to programs for investment, owner-occupied, and even land-acquisition/development.

Please call us with your specific scenario.

Lines of Credit

Most companies fail because they lack the capital to grow or the wherewithal to withstand fluctuations in growth. Many times a company has the right idea or the right product, but can't withstand the time it takes to become stable and profitable in the market.

What does this mean?

This means a company should have access to short-term debt typically in the amount of 1 to 2 months of revenue or the maximum amount of a company's accounts receivable. This debt should be reserved for short-term needs only. Having this debt available does not mean you should use it for long-term purposes: like purchasing equipment or other long-term assets. The purpose of a line of credit is to finance a short-term deficit in a company's cash flow.

Extreme growth sounds great, right? Well, if your company has 60 day terms, and you receive $2,000,000 in new contacts - you now have to survive the next 60 days while paying not only your overhead, but also whatever costs are required to perform on these new contracts. Depending on your margins, you might have to come up with over $1,500,000 in working capital. If you tie-up a line of credit with a long-term asset, like equipment, you will restrict your access to the cash you need 'to survive' your periods of growth.

We can help you finance your short term working capital needs. Whether you need a new line, a larger line, or a more flexible line, we can help. We have a more flexible credit appetite than your local bank and also have access to amounts from $50,000 to $5,000,000+ whatever your need may be.

Accounts Receivable Financing

Do you ever feel like you are financing your customer's invoices for them? Do you feel like you get paid last? Like most companies, your customers probably don't pay on delivery. We can help you access the cash behind those receivables and put them back into what's important - growing your business. LeaseLine offers a wide variety of accounts receivable financing options. We can help you free up the cash you need to purchase new equipment, hire more employees, or expand your marketing efforts.

Like a line of credit, account receivable financing allows you the cash to cover the time from when you invoice your customer to when you actually get a check from your customer.

How does it work?

Accounts receivable financing is like trading your invoices for cash. Instead of waiting 30, 60, or 90 days to get paid on what you've already delivered, you submit your invoices to us, we give you immediate cash, and then we wait for payment from your customer. This allows you immediate access to those funds for which you've already performed your service.

We have no contract periods or monthly restrictions on volume. We approve you, and then you can send us your invoices when you need the cash - it's as simple as that. Call us now to learn more - 303.868.8451.

Merchant Processing

Expand your customers' payment options, simplify your business operations, and increase revenue with merchant card processing. Our card processing solutions enable your business to accept credit cards, debit cards, electronic checks, gift cards, and other payment options. Our processing options compete with the largest of banks. Call us for a quote today.

Residential Mortgages

Everybody offers mortgages, right? To a degree. We have the resources to offer a broader variety of options than your typical bank. Instead of one source for mortgages, we have many. Like putting together two pieces of a puzzle, we are able to match your specific mortgage needs with a lender who has an appetite for your specific type of loan - which typically cooresponds to a lower rate and more attractive terms for the borrower. Your bank acts as a 'catch-all' for mortgages, so they have generic terms and generic rates. We know which banks are aggressive on certain loan types and structures - so we typically a) have a higher approval success rate, and b) obtain lower rates and better terms than the competition.

Here are a few examples of our more creative success stories:

Bank Turndown - $180,000 cash-out refinance

Customer was turned down by his bank, and several others. We knew of an out-of-state lender who wanted transactions under 200k with less-than-perfect credit. Approval came in 3 hours, closed several days later.540 FICO, full doc, 65% LTV.

100% Financing - $230,000 purchase - no cash out-of-pocket

Customer needed 100% financing with 20% gift of equity from seller. Approval came in 2 days, no cash from the customer, closed the next week.

Non-Permanent Resident - 3 day approval

Customer had a 2 year work history, but no green card. Approval in 4 days, with a 90% LTV and minimal cash out-of-pocket - closed several weeks later

Jumbo Refi - minimal options

Customer had one proposal from a high-rate lender for loan refinance over $500,000. We connected him with a jumbo-specific lender and saved him over 2 points. No cash out of pocket.

These are just a few examples of the mortgages we've been able to provide. We can typically compete with, and usually beat, the big-box lenders. Give us a quick call, and we can let you know what options you have.