Case Study
We are particularly optimistic about the promotional financing options through blind discounting to your customer. Below is a case study of a customer that recently took advantage of a subsidized rate offer by one of our vendors. In this case we will try to lay out clearly the value leasing brought to our customer. You will hopefully see the value in many of the areas this proposal has already defined.
This family owned business has been a loyal Sony customer for years. Being familiar with Sony products and understanding the increased business that this equipment would bring, the customer was eager to move forward with the purchase. The customer then contacted BandPro to begin the proposal process.
After receiving the proposal from BandPro along with information about leasing options the customer inquired about how he might find out more about leasing. Upon introduction to the customer, the BandPro Financial Services team discovered that although the customer desired to pay cash for the camera, the customer realized that in this economy, it makes more sense to hold on to his cash and use leverage via a leasing product.
With this particular camera, Sony, the manufacturer provided a 5% interest dollar buy-down to Sony Financial Services which gives the customer a 24 month lease at 2.88% or 36 month lease at 5.24%. (The customer would need to qualify based on the credit requirements for Sony Financial.) In this case, the customer is purchasing the camera at a locked in price provided by Sony. Since the customer is interested in the 36 month lease option, Sony will buy down the rate from 8.53% to 5.24% for the 36 month term.
Our BandPro Financial team member took down some basic corporate information and asked a few simple questions. Within an hour of collecting the information without even having the customer fill out a lease application the customer was approved under the corp. only lease guidelines. The Company executive we were working with was very happy to hear back from us so soon with the good news.
Lease documents were emailed over to the customer later that same afternoon. Once we received signed documents back in our office the final processing tasks were performed and the lease was enacted.
Customer ProfileThe customer is a professional motion picture film, HD + SD video rental, sales, service and repair center. They provide high quality equipment and service to a wide range of film and digital video cinematographers.
- Leased Product: Sony Hi-Definition F35 Camera Package with HD Video Processor purchased from BandPro Film and Digital, Inc.
- Type of Lease: Corp. only capital lease with a 3 year term and no down payment.
- Lease Value Proposition: Cash Flow Management, Ease of Qualification, Tax Advantages
This family owned business has been a loyal Sony customer for years. Being familiar with Sony products and understanding the increased business that this equipment would bring, the customer was eager to move forward with the purchase. The customer then contacted BandPro to begin the proposal process.
After receiving the proposal from BandPro along with information about leasing options the customer inquired about how he might find out more about leasing. Upon introduction to the customer, the BandPro Financial Services team discovered that although the customer desired to pay cash for the camera, the customer realized that in this economy, it makes more sense to hold on to his cash and use leverage via a leasing product.
With this particular camera, Sony, the manufacturer provided a 5% interest dollar buy-down to Sony Financial Services which gives the customer a 24 month lease at 2.88% or 36 month lease at 5.24%. (The customer would need to qualify based on the credit requirements for Sony Financial.) In this case, the customer is purchasing the camera at a locked in price provided by Sony. Since the customer is interested in the 36 month lease option, Sony will buy down the rate from 8.53% to 5.24% for the 36 month term.
Our BandPro Financial team member took down some basic corporate information and asked a few simple questions. Within an hour of collecting the information without even having the customer fill out a lease application the customer was approved under the corp. only lease guidelines. The Company executive we were working with was very happy to hear back from us so soon with the good news.
Lease documents were emailed over to the customer later that same afternoon. Once we received signed documents back in our office the final processing tasks were performed and the lease was enacted.
ConclusionIn closing we hope to have laid out a clear picture of both the simplicity of process and extensive benefits associated with leasing. With the blind discounting that Sony provided on the equipment, the discount was only 5% as opposed to an average of an 10-15% discount that is generally given to customers on sales proposals. The promotional financing that the customer received allowed them to get the equipment required to take their business to another level, leverage a leasing product that gave them a monthly payment and kept the cash available for other business essential needs.
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