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| Schools Can Get 0% Financing and 90 days deferred billing for installation of the access control systems |
Ingersoll Rand Security Technologies announced that its dealers and integrators can help private K-12 schools and colleges obtain and install their access control systems easier and faster through leasing. Working in tandem with First American Vendor Finance, Ingersoll Rand Security Technologies dealers and integrators can help their private school customers eliminate the need to go through a capital budget process to get all the money at once. With the leasing option, private schools can quickly analyse their costs versus payback.
"Private schools are very accustomed to financing," explains Beverly Vigue, Ingersoll Rand Security Technologies Vice President, Education Markets. "Through this partnership with First American Vendor Finance, our dealers and integrators can truly distinguish themselves by providing a significant competitive differentiator. With leasing, they can call on a private school and offer 0% financing or 90 days deferred billing."
Most private schools prefer leasing because it helps them preserve capital. They are not required to immediately pay for the entire cost of the systems, which will bring additional safety and security to their students, staff and assets yet they still have the option to own the equipment at the end of the lease. Leasing payments can be structured to meet their budget requirements and help manage cash flow. Lastly, leasing avoids lengthy capital approval processes, such as when entirely different committees approve one versus the other, and gets the security system installed and up and running faster. In most elementary terms, one gets treated as an investment in capital; the other is treated as an operating expense.
At the end of the lease, the school can purchase the access control equipment at the fair market value, return the equipment or extend the lease |
According to Vigue, once a private school decides to explore the leasing option, the dealer or integrator contacts First American Vendor Finance which, from then on, does all the work regarding the lease, working hand in hand with the dealer to get the project moving.
Most private schools select one of two types of leasing. The Fair Market Value (FMV) lease is extremely budget-friendly as it provides the lowest monthly rental rates. It shortens the sales cycle for the school and provides end of lease upgrade options. It also may provide off-balance sheet treatment since the access control system is not treated as an owned asset. The school can also obtain 0% financing with a FMV lease. If the project cost is $250,000, 36 monthly payments would run approximately $6,945 per month. At the end of the lease, the school can purchase the equipment at the fair market value, return the equipment or extend the lease.
The Capital lease provides straight financing and, at the end of the lease, the school has the option to buy all of the access control system for $1. With this lease, the school can obtain 90 days deferred billing. With a capital lease, that same $250,000 project would have monthly payments of approximately $7,500. At the end of the lease, a single $1 bill will buy the access control system.
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