HAVE TO SEE TO BELIEVE

2017 - $1.06 Trillion of Equipment Financed

Your Biggest Opportunity

$646 Billion

via Lease

(61%)

$414 Billion via

Bank Financing

(39%)

Equipment Leasing and Finance Association

Who (currently) Offers Leasing?

➢Out-of-pocket expense

➢Accountant / CFO recommendation

➢Vendors CONTROL how it’s financed

Do your customers even KNOW you finance equipment?

Why Customers Lease

The True Cost of Convenience

22%

17%

Vendor Representation

Customer Reality

Vendor Representation

Customer Reality

The True Cost of Convenience

21%

Do You Know…

What percentage of

businesses lease

equipment?

80%+ of your

customers and

prospects acquire

equipment through

leasing

--FDIC, SBA & ELFA reports

Good News /Bad News

…with someone else!!

A “Bragworthy” Customer

“Bragworthy”…

Lab

Equipment

Lab

Equipment

Tissue Testing

Equipment

Scanning

Equipment

Microscopes

Testing

Equipment

Lab

Equipment

RE & Commercial Lending

But For Whom???

28 Equipment Lease Loans

Truly Bragworthy

$12.8MM over 10 years for a Restaurant Franchisee

2 Equipment Lease Loans $ 9.9MM over 2 years for an Ag Grower

3 Equipment Lease Loans $ 2.7MM over 1½ years for a Tile Manufacturer

19 Equipment Lease Loans $10.4MM over 8 years for a Dental/Pharma University

Customer Relationships Which Are “Truly Bragworthy”

Do you know…

What percentage of

business owners

contact their bank

prior to financing

equipment?

A recent industry

survey found that 95%

of businesses don’t

think of their bank

when financing

equipment

--Leasing News

Appalling…

Differentiate Yourself – Offer Options

For every equipment

financing

opportunity offer

your customer a loan

and a Lease option

What is a Lease?

It’s the OTHER way to finance equipment

Equipment Financing

Loan Lease

There are Basically (2) Types of Leases

1. Capital Lease

-Finance Lease

-$1 Buyout / $101 Buyout

-Fixed Price Purchase Option

2. Residual Lease

-Fair Market Value “FMV”

-True Lease

-Operating Lease

Start your own leasing department

- or -

Refer customers to another

bank/3rd party

- or -

Work with a company like

BancLeasing

Options Banks Have to Capture

Leasing Opportunities

Your Bank…

• Sets the yield and makes the credit decision

• Finances business essential equipment

• Receives the payments

• Maintains perfected security interest in the

equipment

• Has no residual risk

Let’s Discuss Working with a Company

like BancLeasing

Just Like A Loan…

Lessor handles all of the lease and loan documentation including invoicing

• You control the credit

decision (i.e., any/all

credit enhancements,

etc.)

• You have security

interest in the

equipment• Once paid in full, note is fully amortized

with no residual risk

• You earn interest and fee income

Bank books a LOAN!It’s a lease for your customer, and a lease for us (BancLeasing),

but it is a loan for your bank

Bottom Line…It’s a Loan for your bank

Automotive Repair and Testing Automotive Paint Booths

Restaurant FF&E

Packaging Equipment Lines

Exhibit/Display Booths

Broadcasting Equipment

Video Conferencing Equipment

Health Club Equipment

Playground Equipment

Office FF&E

Refrigeration Equipment

Service Station Equipment

Hotel FF&E

Hydraulic Lifts

Mailing and Sorting Equipment

Mining Equipment

Recording, Stage, Lighting and Audio

Systems

Does Your Bank Have Customers With Any

of This Business Essential Equipment?

Hospital, Surgery Center, Medical/Dental

Computer Hardware and SoftwareConstruction EquipmentMachine Shop/Machine Tool EquipmentPoint of Sale EquipmentPrinting, Embossing, Embroidery Injection Molding Equipment

Telephone SystemsRetail Store FixturesEnergy Management SystemsA/C And Heating Lighting SystemsSignageWarehouse RackingForkliftsOil Field EquipmentAgricultural and Irrigation EquipmentAir Compressors/GeneratorsGolf Course Maintenance Equipment

Food Preparation / Meat Processing Equipment

Identifying Opportunity

Referrals

--existing customers

--centers of influence

UCC searches

Recent news articles/stories

Understanding the Opportunity

What is your customer’s CAPEX budget for this year?

What equipment is business essential?

How has the business paid for equipment in the past & why?

--Cash

--Traditional bank financing

--Vendor financing

Ask for the business!

How to Qualify a Leasing Prospect

➢ Are they currently financing any equipment?

➢ Have they been offered both options (loan and lease) before determining what is best for their business?

➢ If they were to learn that your bank is able to offer both a loan and lease option to finance equipment -would they allow your bank to compete for and earn their business?

• More income with

increased loan growth

Fantastic Impact

Lease or Loan…

You Win and Your

Customers Win!

• Additional wallet share with your better to best

customers

• Protecting hard-earned customer relationships

from your competitors

➢ Ownership / Power over Collateral

➢ Early Buyout / Payoff Protection

➢ Administrative Cost Savings

➢ Levels the Playing Field

Lease Advantages --- Bank

WHY NOT JUST OFFER MY CUSTOMER A 100%

LOAN?

Customer:

❖ Finance the total solution including delivery and installation

❖ Sales taxes collected on rental stream

❖ Depreciation can be taken over lease term vs useful life

Bank:

❖ Bank has ownership rights through assignment of the lease

❖ BancLeasing handles all administration and servicing of the lease

“BancLeasing provides our relationship

managers with the tools and confidence to

know that our customers are financing their

equipment with us.”

Jay Lewis

SVP, Washington Trust Bank, WA