Before you

leap into

finance speak

to Clear…

Chris Barker , Renewables & Energy Efficiency Advisor Sean Clarke, Internal Account Manager (Green Energy)

Presentation

Staying Ahead Of Your Competitors

Leading with Leasing

Cash & Leasing

Cash only

How Leading With Leasing Enhances Your Sales

Overcome customer budget restrictions and price objections

Increase your order values, maximise your profit thru upselling

Guarantee your income, and increase your cash flow. You get paid the full 100% of your invoice value immediately upon installation

Protect your customer base and create repeat business- your customer is committed to you. Provides opportunity to revisit and sell upgrade or extra equipment

Be ahead of your competition. Large companies are moving to leasing in this sector, benefit from being an early adopter

An understanding of how the process of selling through leasing can allow you to increase your sales conversion rate and

plan ahead for future sales cycles.

Customer Benefits 1. Customer enjoys a return on their investment immediately – they can purchase now, their

business enjoying the benefits now. The benefits sometimes outweigh the costs of the scheduled repayments, producing a positive cash flow. With cash, they have to wait often years until the investment reaches the break-even point.

2. Tax advantages – customer enjoys 100% tax allowances on each payment (Non-sovereign risk)

3. Customers pay gradually in instalments – retain liquidity in their organization, so they can gain interest, or invest in their core business

4. Customer protects their existing credit lines – a new line of credit is valuable!

5. Customers can afford to do additional projects, either now or during the lease term, because you’ve spread their costs

6. Their investment is flexible – customers can invest in additional new higher-efficiency/profit equipment whenever they want and add to the lease as they will be credit-cleared

7. Lower ‘sign-off’ levels for the customer, empowers decision making at lower management, speeds up decisions, because it is revenue expenditure, not capital expenditure

-£30,000

-£25,000

-£20,000

-£15,000

-£10,000

-£5,000

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£5,000

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Bal

ance

of

retu

rn o

n in

vest

men

t(£

)

No. of months following up-front cash purchase

Paying by Cash - return from RET / EE Investment

Paying by Cash - return from RET / Energy Efficiency Investment (based on £28,700 refit costs, resulting in energy and maintenance savings of £1,162/month)

Break-even point – a wait of over 2 years until the monthly savings of £1,162 have repaid the £28,700 cash outlay

Up front cash expenditure of

£28,700 on investment

Period of negative return

This chart shows the issue with paying through cash- not only does paying through cash remove core funds from the business, which could be invested elsewhere, it requires a period of time, dependant on the savings, before the capital is repaid and the customer can enjoy a return on there initial investment. Paying through leasing results in an immediate return on the customers investment as, where possible, the rental will be aligned to the savings made.

The Disadvantage Of Paying With Cash

The Advantage Of Leasing

£0.00

£200.00

£400.00

£600.00

£800.00

£1,000.00

£1,200.00

£1,400.00

1 5 9 13 17 21 25 29 33 37

Mo

nth

ly C

ash

p

osi

tive

gai

ns

(£)

Monthly repayment schedule (3years)

Cash Positive Gains from EE Investment

Paying through leasing- return from RET / Energy Efficiency Investment (based on refit costs, resulting in energy and maintenance savings of £1,162/month)

£1,162 monthly savings, monthly lease payments of £1,008 = Net Monthly Cash Gain of £154

Lease payments completed after 36 months. Net Monthly Cash Gain of £1,162 from this point onwards

Leasing can produce immediate return on investment (paying by cash does not!)

In this example, the chart shows the monthly benefit of paying through leasing. The customer receives a ROCE from the funds that remain in the business, and also realises a cash positive gain each month. Come the end of the lease agreement, the savings are accelerated as all savings are realised by the customer.

‘Lead With Leasing’ Integration Process

(4) Clear Support

(3) Train & Incentivize Sales Staff

(2) Integrate tools

(1) Management Commitment

4) Dedicated, experienced, qualified EE support staff. Clear informs & negotiates with funders, 24hr access to our system and your deals, can liaise with customers if requested. 3) Free sales staff training programme, full Sprint training, empower Sales team with tools, skills & knowledge to give ability to increase sales 2) Clear Partner webpage – Lease Quotation Letters, demonstrate cash-positive payments, Mobile App, integrated reports 1) With full management buy-in into Leading With leasing, you reap the full benefits from your sales staff

Multiple Funders

Clear You the supplier

Sprint app and partner webpage

Clear proposal

Credit clearance

The Process Flow

Our Innovative Mobile Application

The ability to upload new quotes, view saved quotes or view quotes that you have already uploaded.

Simply select the technology you wish to supply, along with a short description of the model etc.

You are able to manipulate the term and payment frequency, allowing you to adjust the rental based on your customers budget.

Return to saved quotation, allowing you to amend, send the quote to the customer or to upload to the team at Clear Asset Finance.

With our newly developed mobile application, you are able to provide on the spot quotations to the customer. We will incorporate your rates into the application, allowing you to be confident that the indicative rates provided are as accurate as possible [subject to credit clearance]. You can then view saved or uploaded quotes, make amendments, send the quote direct to the customer etc. We have worked hard to make sure the application is supported by many operating systems, and you can be assured in knowing that the most popular devices are supported [Android, Windows desktop, iPad, iPod, iPhone etc.].

Making Each Quotation Personal

We want you to be as prepared and confident as possible when proposing a lease option to the customer. Further to the above tools, we will provide a bespoke and personalised lease quotation letter, outlining the benefits of leasing and diagrammatically portraying the benefits of leasing as opposed to a cash purchase. The feedback we have received is that this is a very useful tool and allows the customer to visually see the benefits of leasing.

Sales Support

We understand that in order for finance to be successful in your sales strategy, you require a first class sales support service.

We are continually developing and creating sales aid tools that will help you overcome objections and budget restrictions. We have a dedicated ‘green’ division who are focussed solely on supporting you to convert sales through the use of finance.

Imbedding Finance Into Your Sales Strategy

Clear Asset Finance- An Overview 4 Directors’ collective 60 years leasing experience Industry knowledge and experience - Masters-level ‘green energy and

energy efficiency’ qualified, background in leasing and in implementing green building standards tools with the Green Building Council

A wide range of over 20 banks/lenders experienced in funding ‘green’ projects –and at competitive rates

More flexible and efficient credit rating assessment than CT/Siemens and Salix for your customers

Credit decision often within 4 hours for leases Electronic Data Interface between you, Clear and the funder – secure and

efficient process Innovative sales-aid tools

Should you have any feedback, ideas or general queries, please just get in touch.