COMMERCIAL GROWTH STRATEGIES
Efficiency
Traditional Financing
Vs.
The Downpayment Retention Solution
How it Works
Most equipment loans require a substantial down payment and leave borrowers with significant out-of-pocket costs. Consider this typical scenario:
Borrower Requirement: Looking for a $1,000,000 equipment lease with zero down, prepared to pay $30,500/month over 36 months.
Bank's Offer: Approval for 80% financing, with 20% ($200,000) down.
Payments: $23,194/month for 36 months.
Total Borrower Outlay: $1,034,984 (including down payment and monthly payments).
Now, imagine a financing option where your borrower can still make 36 payments at $30,500 per month but with
increased benefits and reduced overall costs:
No Major Outlay: The borrower maintains 36 payments at $30,500/month, totaling $1,098,000.
End of Term Benefits: At the end of the 36 months, the borrower retains an asset worth $200,000 plus a life insurance policy.
Total Borrower Outlay: After considering the retained asset and policy value, the borrower’s effective cost is less than $898,000.
Key Benefits for Lenders
Loan Approvals
Increased Loan Approvals: Make it easier for borrowers to say yes by offering a solution that saves them money and gives them peace of mind.
Capital is Retained
Retention of Capital: Borrowers keep their capital working for them, instead of using it as a down payment.
Enhanced Security
As a lender, you remain listed as a beneficiary of the life insurance policy, ensuring security until the loan is fully paid off.
Market Position
The program makes you a hero because you'rer giving your clients a lower total of payments.
Why Choose the Downpayment
Retention Program?
For Borrowers:
Reduce total financing costs by over $136,000.
Retain valuable assets and gain life insurance coverage.
Protect both business and personal financial interests.
For Lenders:
Offer an innovative product that sets you apart in the market.
Reduce risk with life insurance as collateral.
Create stronger relationships with clients through added value.