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Providing a
Solution for Low-Ticket Leases Leasecomm
has been in the leasing business for more than 16 years and is a leading funding
source of microticket financing. Microticket financing, or microticket leasing,
refers to providing financing for relatively low-ticket items; Leasecomm focuses
on individual transactions ranging from $500 to $10,000. If what you sell is too
small for traditional financing yet too large for cash, Leasecomm may be your
solution. When Leasecomm started in the
1980s, their first major product line was cell phones. If you were a pioneer and
had a cell phone in the ’80s you know they were expensive, sometimes $2000 or
more. Therefore, leasing was the desired option. Over the years Leasecomm
migrated to other lines of business and products. Now transaction processing is
the cornerstone of their business. Everyone in the sales
industry has faced the price objection; leasing can help dismiss that objection.
If a purchase price is too much for your prospect, small monthly payments may be
the answer. That’s where Leasecomm comes in. Leasecomm pays the dealer, in
many cases an ISO, immediately for the product or service and then bills the
customers monthly. Referring to dealers, Jack Miller, Senior Vice President of
Leasecomm stated, “Our target market is ISOs as well as different marketing
companies that are distributors of POS equipment. ISOs have been our bread and
butter market.” Leasecomm Direct Before the advent of the
Internet, Leasecomm had computer connections with some of their largest
resellers/dealers. Greg Hines, vice president of Merchant Services stated,
“We’ve been on the cutting edge as far as doing this type of real-time
credit-scoring system for many years. With the advent of the Internet, we were
able to enhance our prototype system and reach the masses.” The result is
LeasecommDirect. LeasecommDirect is
Leasecomm’s proprietary technology that makes online application approvals
quick. It also allows Leasecomm to provide dealers, or ISOs, with monthly
customer payment records and total sales reports. Hines continued, “Recently
we’ve added an enhanced version of our original LeasecommDirect function,
which has really been a benefit to ISOs and sub-ISOs. Here they can access
different information regarding status of their accounts from both an
application and a reporting stand point, online in real-time.” LeasecommDirect is a tool
that makes Leasecomm even more accessible. LeasecommDirect is a FREE value-added
service provided to all dealers. It allows Leasecomm to be efficient and it
allows ISOs to have access to account information and Leasecomm services 24/7.
It facilitates 1-2 minute approvals and access to management information reports
so ISOs can stay in tune with their customer base. How to get started Here’s how it works. ISOs
go to www.leasecomm.com and fill out a
brief questionnaire. (ISOs can also call an 800 number to receive the
questionnaire via fax). The ISOs complete the information and Leasecomm reviews
the company, personnel, the type of equipment being distributed or software
being licensed, and how the products/services are distributed. In a few days,
upon approval, the ISO is activated to use the program. That’s it. Then, the
ISO can access the LeasecommDirect function directly from the Leasecomm site.
Then they can submit an application online and have an approval and parameters
within minutes. Services Leasecomm provides financing
for a variety of products in a number of industries. There are never any
application or processing fees, nor are there minimum contract requirements.
Some of Leasecomm’s programs designed to provide creative and competitive
financing alternatives include funding service contracts (i.e., security
monitoring), rental agreements, and of course, leasing. Funding Licensed Contracts
If you sell a license, not a
product, you can still benefit from doing business with Leasecomm. Leasecomm
offers funding for sales that don’t involve hard assets, and they pay up front
for license contracts. The company offers revenue-sharing options, full-service
billing and collection services, and shared responsibility for collecting on
defaulted payments. Rental Programs Renting can be a boon for
customers, who like the flexibility. But for dealers who must finance the
equipment, renting programs can be a financial drain. Leasecomm will create,
finance, and administer a rental program that includes up-front funding,
revenue-sharing options and full-service billing and collections. Leasing Programs Leasecomm’s leasing
programs work for many dealers because they get paid up front for the sale and
their customers get their products or services for an affordable monthly
payment. Lease programs can be up and running in days and offer revenue-sharing
options, flexible payment programs, incentives for high-volume dealers, and
billing and collections. Types of Financing Leasecomm provides financing
for a variety of different products including ATMs, credit card terminals and
software. Miller stated, “We will provide financing on virtually any type of
product—transaction processing equipment, software, non-transaction-oriented
equipment, business signs, you name it. A major focus of our business is the
transaction processing area but we are a general-purpose micro-ticket financing
company.” Automated Teller Machines Leasecomm’s ATM leasing
program provides approval and funding for A, B, and C-rated leases. Payment
plans don’t start until the lease does, and the merchant has the option to
purchase the equipment at the end of the lease. Funding can be as much as
$10,000, and there are programs with no security deposits. Credit Card Terminals Leasecomm has a program to
support credit card terminal suppliers as well. Leasecomm’s Diamond Dealer
Leasing Program offers residuals, high approval rates (100% for retail hardware
transactions), competitive factor rates, instant credit decisions on
transactions under $3000 and lease funding and next day lease funding. Software Leasecomm also provides
funding for software, which can be very useful since it always seems that as
soon as the software is installed, a new version has been released. Instead of
incurring the cost of continually purchasing new software, Leasecomm offers
funding for software priced between $500 and $10,000. Leasecomm also provides
financing for copiers, food service equipment, mobile communications, office and
vending equipment, and security monitoring. Benefits Working with Leasecomm can
translate to different types of benefits for ISOs, from increased revenues to
simpler collections. Increased Sales Monthly payments make
products more affordable than paying a lump sum in cash, so more merchants will
buy them. Plus, merchants can afford a higher-end product or service this way,
so you can sell up. Easy Application Process LeasecommDirect makes sending
in credit applications simple. There’s no complicated paperwork, and the
credit decision can be on its way within minutes. Quick Payment Leasecomm provides funding as
soon as the deal clears. They either deposit the money directly to the account
bank account or send you a check by overnight mail. Collections Services Leasecomm’s billing and
collection team handles lessee accounts so dealers don’t have to worry about
collections. Help wanted Leasecomm employs more than
230 people in three locations. Their parent company, MicroFinancial, Inc., is
publicly traded on the New York Stock Exchange. They are currently recruiting
for customer services representatives. To attract and maintain the best
employees, Leasecomm Corp. benefits include medical, dental, 401K (with company
match), health care and dependent care flex accounts, as well as domestic
partner coverage. For more information about employment opportunities call Steve
Constantino at (800) 843-5327. Leasecomm is interested in
acquiring portfolios with the following characteristics: Each contract in the
portfolio is worth $500 to $10,000, total portfolio value is between $100,000
and $15 million, the portfolio includes fixed-term lease or rental contracts,
and the equipment being leased is located within the United States. For information about portfolio acquisitions, call Greg Hines, Vice President Merchant Services/POS Division at (800) 424-2499. If you would like information about becoming a Leasecomm distributor, call Hines or visit www.leasecomm.com. |
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copyright 2001 · The Green Sheet, Inc. |
