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Frequently Asked
Questions
Why is Performance
Capital better than the competition?
How can
I lease equipment from Performance Capital?
What equipment does Performance Capital finance?
Does
Performance Capital work with equipment vendors?
Why
should an equipment vendor develop a relationship with Performance
Capital?
What kind
of service does Performance Capital provide?
How do I use
leasing to close more sales?
My customers arrange their own financing.
Why should I
offer leasing?
My customers
all pay cash.
Why should
I offer a lease program?
My customers
think leasing is too expensive.
How do
I handle this objection?
Does
it cost me anything to offer a leasing program to my customers?
What
kind of equipment can be leased?
How
long does it take to get paid?
Is my company liable if a Lessee stops paying?
How long will it take to get an approval?
What if my customers decide they want to finance additional equipment
or upgrade the equipment?
What
kinds of lease terms are available?
Why
should my customers lease?
What about
sales/use tax?
Who can
finance or lease?
Are
my customers qualified to lease equipment?
How do my customers
apply for a lease?
How
is the monthly payment calculated?
What
factors are used to determine credit worthiness?
How
much do my customers have to pay up front?
Why
is Performance Capital better than the competition?
Leasing is more than just a numbers game; leasing is service that
you can count on every day. We have a salesperson dedicated
to each vendor. Our sales people not only have an expertise
in equipment leasing, they have an understanding of your industry.
More importantly, they develop an understanding of your
company and your specific objectives. Our vendor programs
are designed specifically to meet the customer's needs; and every
customer's needs are unique. Once a program is designed, we provide
initial training for you and your sales force as well as follow
up training and support throughout the entire program. We
are not a broker and
we service all our commercial accounts from start to finish. You
and your customers will deal only with Performance Capital throughout
the entire relationship. We value your business too much
to hand it over to someone else. Return
How
can I lease equipment from Performance Capital?
For transactions under $100,000 the lessee completes a one page
lease application and faxes it to Performance Capital. Our customers
also have the option of completing and electronically submitting
a secure on
line lease application for immediate processing. For
transactions over $100,000, we require an application and the last
two years of financial statements or the last two years
of complete income tax returns. All applications are
immediately processed for free. Once approved (usually
within hours), we will generate a one page lease approval form
and send it to the lessee and/or vendor. Approved applications
and lease rates are valid for 90 days. To complete
the transaction, the lessee authorizes a simple
one page lease agreement written in plain English with
terms that everyone can understand. When we receive and
approve the executed lease contract and vendor invoice, Performance
Capital pays the vendorimmediately--not days or even weeks
later. It's that simple!! Return
What
equipment does Performance Capital finance?
Performance Capital leases all types
of equipment with the exception of titled vehicles.
However, a high concentration of our current vendors manufacture
or sell computer (hardware or software), point of sale, telecommunication,
office, medical, tooling, printing, mailing, laundry, restaurant,
material handling, patient care, and similar types of production
equipment. Return
What are Performance Capital's credit requirements?
Generally, Performance Capital prefers to lease equipment to lessees
that have been in business at least 24 months. Some unacceptable
credit information for small and mid size companies includes a
bankruptcy within the past ten years, open federal and/or state
tax liens, real estate tax liens or open civil suits in excess
of $1,000. Return
Does Performance Capital work with equipment vendors?
Absolutely! Teaching equipment manufacturers, distributors,
and resellers to use leasing to help sell their products is one
of the most efficient means for Performance Capital to distribute
its financial products. Depending on the equipment cost,
up to 88% of the lessees choose the leasing company that is recommended
by the equipment vendor. Return
Why
should an equipment vendor develop a relationship
with Performance Capital?
Every sale proposal should be presented with a lease-financing
alternative. 93% of the customers that "want to lease"
and receive a sale only proposal, assume that the vendor does
not have the ability to lease their equipment. To avoid the hassle
of searching for additional funding, the customer will simply
do business with the equipment vendor that can provide immediate
financing for their products. Performance Capital's role
is to provide the required funding to your customers to insure
they do business with you and not your competition. Return
What
kind of service does Performance Capital provide?
Our customers say our service is outstanding! Performance
Capital has invested heavily in technology to assist our people
in providing the highest quality of service. In addition,
Performance Capital is continually evaluating changes in technology
to insure that our service remains outstanding. If you are
an equipment vendor looking to increase sales, or an end-user
looking to conserve working capital, Performance Capital can help.
We provide the competitive price and personal service
that will meet your objectives and maintain a lasting relationship--not
just a one shot deal. Return
How do I
use leasing to close more sales?
The first thing you need to do is to eliminate offering your customers
a total cost proposal and concentrate on selling your products
based on a monthly payment that is within your customer's monthly
budget. Then your customers are assured of receiving all
the equipment they need. In addition, by presenting a much
more affordable monthly lease payment, you can convert those customers
who are reluctant to make a buying decision due to the objection
of having to make a large upfront cash outlay. Your customers
will often find that leasing produces a greater monthly operating
profit. As a result, they will return to lease more equipment.
Return
My customers
arrange their own financing. Why should I offer leasing?
By allowing your customer to arrange their own financing, you
lose control of the sale. Your competition may try to unhook
your deal, your customer may get cold feet or their financing
alternative may become too cumbersome to complete. By offering
the services of your own leasing company, you will control the
sale. The approval process for leasing is generally faster
and easier than other types of financing, thus preventing your
customer from changing their mind. If your competition becomes
a factor in the transaction, your lease representative will often
know and inform you immediately. Return
My customers
all pay cash. Why should I offer a lease program?
While some of your customers are paying cash, many other potential
customers are leasing their equipment. In addition, many
of your customers that paid cash for their equipment, may have
been able to afford better or more equipment if they had been
given a lease option. If your cash customers leased their
equipment instead of paying cash, they may have been able to use
the cash to expand their businesses, thus requiring more of your
equipment. Return
My
customers think leasing is too expensive. How do I handle
this objection?
Leasing is a competitive source of funds. It is easier, faster
and more convenient than borrowing. It allows a business
to grow by freeing up working capital for general expenses, inventory
and any unforeseen emergencies. Eight out of ten companies
use leasing to finance their equipment acquisitions. It is
not expensive. Return
Does
it cost me anything to offer a leasing program to my customers?
No. In fact, leasing will help you maintain profit margins.
You will increase sales by offering your clients additional
options, and making it more affordable for them to acquire your
equipment. It costs you nothing to mention leasing to your
customer. Return
What
kind of equipment can be leased?
Virtually any equipment utilized by a business can be leased,
new or used, including soft costs such as freight, installation
and training. Return
How
long does it take to get paid?
In general, it takes 24 hours for you to receive the check for
your invoice, once the equipment is delivered and accepted. Return
Is
my company liable if a Lessee stops paying?
No. Unless you have a special program in which you request
recourse or a remarketing agreement. The credit worthiness
of a lessee is not your risk. Return
How
long will it take to get an approval?
Processing of your customers credit application will begin immediately
upon submittal. The credit application may be completed
on-line or you may have your customer download and fax it to us.
Once we have received all the necessary information, the
credit decision will be provided to you and your customer within
24 hours. Return
What
if my customers decide they want to finance additional equipment
or upgrade the equipment?
As your customer's business grows and their needs change, you
can add or upgrade them at any point during the lease term. If
the nature of your customers industry demands that they have the
latest technology, leasing can help prevent their equipment from
becoming obsolete. Return
What
kinds of lease terms are available?
A variety of leasing products are available that allow us to tailor
a lease to fit your customer's month-to-month cash flow requirements.
Lease terms usually range from 12 to 60 months with various end
of term options. Return
Why
should my customer lease?
Leasing provides a great deal of flexibility in how your customers
manage their equipment acquisitions. Whether your customers
are a small or large company, leasing allows them to structure
their equipment acquisition to best suit their time frame and
payment structure. Return
What
about sales/use tax?
Your customer is responsible for any and all sales/use taxes.
Return
Who can
finance or lease?
Any company, organization or association can lease. At present,
we do not lease equipment to individuals for personal use. Return
Are
my customers qualified to lease equipment?
The general guidelines for business leasing are:
24 months in business
Commercial checking
account or proof of business
$1000 minimum order
Return
How do my customers
apply for a lease?
»Complete a quick, easy and secure on-line application.
»Print an on-line application, fill it out and
fax it to 954-523-0766.
How
is the monthly payment calculated?
Monthly payment is determined by a Lease Rate Factor; a periodic
rental payment to a lessor for the use of assets. Lease
rate factor x equipment cost = your monthly payment. Return
What
factors are used to determine credit worthiness?
Generally, our credit criteria requires us to review your customer's
time in business, references (from bank and trades), credit rating
(from D&B or other credit bureaus) and their personal credit
profile. Return
How
much do my customers have to pay up front?
A typical lease would require a security deposit of two monthly
payments. Return
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