COMMERCIAL FUNDING FOR YOUR CUSTOMERS

Before you

leap into

finance speak

to Clear…

Chris Barker , Renewables & Energy Efficiency Advisor Sean Clarke, New Business Support Coordinator

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 signed up 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 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. Why make them wait!

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

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

Their investment is future-proofed – customers can upgrade to new higher-efficiency/profit equipment whenever they want. Customer is not investing in a depreciating asset.

Lower ‘sign-off’ levels for the customer, empowers decision making at lower management, speeds up decisions

Tax advantages – customer enjoys writing down allowances on each payment (see diagrams)

How Would A Customer Benefit From Leasing?

-£30,000

-£25,000

-£20,000

-£15,000

-£10,000

-£5,000

£0

£5,000

£10,000

£15,000

1 5 9 13 17 21 25 29 33

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

Break-even point – a wait of over 2 years

Up front cash expenditure of

£28,700 on investment

Period of negative return

The chart shows the issue with paying through cash- it removes core funds from the business which could be invested elsewhere, AND it requires a period of time 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

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

Lease payments completed after 36 months.

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

The chart shows the monthly [in this example] 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.

£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

tiv

e g

ain

s (£

)

Monthly repayment schedule

Leasing provides the customer with 100% tax allowances on every lease payment. E.g. On a £1000 monthly lease payment, if a company pays 25% corporation tax on its profits, it will receive £250 back in the form of tax-not-paid. This makes the real

value of the lease payment only £750

Tax relief

Cash positive gains thru savings

£0

£2,000

£4,000

£6,000

£8,000

£10,000

£12,000

1 5 9 13 17 21 25 29 33 37

Bal

ance

of

inco

me

fro

m in

vest

me

nt(

£)

No. of Monthly repayments

Tax allowances bring huge benefits! Hence, the approximately £250 a month tax benefit amounts to £000’s extra revenue

income over the period.

‘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.

Customers pay gradually in instalments, retaining liquidity in their business, so they can gain interest, or invest in their core business

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

Their investment is future-proofed – customers can upgrade to new higher-efficiency/profit equipment whenever they want

Lower ‘sign-off’ levels for the customer, empowers decision making at lower management, speeds up decisions

Tax advantages – customer enjoys writing down allowances on each payment

Additional Benefits Of Leasing;

Sales Support

We understand that in order to 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.