The Lease Rebate - Who is it for?
Our clients fall in two baskets
The Lease Rebate program is for two types of clients: those who are overburdened with debt and constrained cash flow, and those who can double their money on a loan within 2 years, but only if they have a monthly payment.
TL;DR
The Lease Rebate program is for two types of clients: those who are overburdened with debt and constrained cash flow, and those who can double their money on a loan within 2 years, but only if they have a monthly payment. Consolidating daily payments into a monthly payment can be an attractive option for business owners struggling to manage their cash flow, as it can help them gain more control over their finances and better plan for the future. The program utilizes a loophole in the equipment leasing industry to net clients cash back on a high-quality computer server lease, and the rebate ends up costing only between 20% and 25% per year for 5 years. Our clients receive 50% of the net lease amount after various fees, and the total turnaround from application to funding can be done in 3-5 business days.
Net funds are calculated by taking the total approved lease amount and subtracting any required down payments, sales tax, and fees. The merchant will then receive 50% of the remaining net funds.
Why choose this option?
Consolidating daily payments into a monthly payment through a high-interest loan can be an attractive option for business owners who are struggling to manage their cash flow. Daily payments, which are often associated with merchant cash advances, can put a significant strain on a business’s finances, making it difficult to cover expenses or invest in growth opportunities. By taking out a loan with a monthly payment to consolidate these daily payments into a single, manageable monthly payment, business owners can gain more control over their cash flow and better plan for the future.
While the interest rate is higher than traditional loan, the reduced stress and improved cash flow that comes with a monthly payment are well worth the cost. It is important for business owners to carefully consider their options and assess the potential benefits and drawbacks of consolidation before making a decision.
Overview of the Program
The program utilizes a loophole in the equipment leasing industry to net you cash back on a high quality computer server lease that is, albeit, slightly overpriced for the lease terms that they are approved for. That cash rebate ends up costing only between 20% and 25% per year for 5 years (after the tax deductions). Additionally, the leases build up business credit and will not be debt on the balance sheet. There’s no additional UCC other than on the specific equipment that is being ordered, so it won’t interfere with any other financial products, like an SBA or Line of Credit.
While it’s not really a “rebate”, it functions similarly: The equipment provider agrees to repurchase the leased IT equipment from the lessee at the initiation of the lease for a portion of its invoiced price and advance that amount to the borrower. These semantics are important for the client’s tax deductions.
We have built an extensive network of equipment sellers and leasing/lending companies to get far more business owners qualified and for high amounts. While none of our partners look at Paydex (D&B) scores, they instead look at the PayNet.
We can offer no PG for established businesses with extremely strong scoring models, and we can get just about anybody approved if they have the following:
- 650+ FICO with at least 5 tradelines and 5 years credit history
- 3+ years TIB (preferably 5+)
- Any combination of business/personal credit/TIB that makes sense to the underwriters.
1,758,340.00
How Much Will I Receive?
Our clients receive 50% of the net lease amount after various fees. We calculate the “net” payment after deductions:
Take the total approved lease amount.
Often there are either 10% down payments due towards the lease or the first and last payment due. Those payments are rebated to the merchant in full.
The merchant pays sales taxes on the servers, each state is different. Subtract the sales tax, that is net financed amount.
IIf the leasing company has fees (documentation, packaging, whatever), those are also rebated to the merchant as well.
The merchant will net 50% of the net funds remaining after these rebated amounts.
This is the equivalent of taking a cash advance one and a half times at a 1.49, but instead of each payment being 6 months (aggregate 12), it’s being paid back over 4 years. If someone cannot double their money from a business loan in 2 years, they should not be borrowing money.
Lease Rebate Calculator
Other Important Information
- There are very few restricted industries. We can fund auto dealers, trucking companies, sub-contractors, etc. However, no adult or gambling.
- Lenders want to see comparable debt that is at least 24 months old and at least 50% of the loan/lease request. MCAs, credit cards and revolving debt, mortgages, student loans, auto loans don’t count. So the “winning” industries are the ones that utilize equipment leases.
- Startups can be approved so long as there is pristine credit history
- Home based businesses can be approved so long as we can demonstrate the server(s) is being used for business rather than personal reasons. (However, no home-based trucking)
- Total turnaround from application to funding can be done in 3-5 business days
- Can fund/advance borrowers up to $300k for strong applicants
- 36 to 60-month term with monthly payments.
- Payments are 100% tax deductible
- We can get many borrowers reduced/deferred payments for up to 6 months if necessary.
- No minimum revenue requirements. Even business owners with only $80k in annual revenues have been approved.
- Being too overleveraged with MCA debt can kill a file, but as long as there is space, it can be funded.
- You will receive an extremely high quality server with software and an extended warranty.
