CARMEL, IND. - May
19, 2010 - Ingersoll Rand Security Technologies today 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 analyze 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.
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.
More information
on Ingersoll Rand Security Technologies brands and products is available at
www.securitytechnologies.ingersollrand.com.