Yooj Solutions, Inc. - The Size of Success

How will your customers pay?

Option 1: PAY CASH
- Tax consequences - customer is forced to depreciate the equipment over a scheduled period of years
- Reserve consequences - liquid funds are depleted and unavailable for more crucial uses
Option 2: BANK or CREDIT UNION LOAN
- Collateral requirements - Financial institutions may request other collateral and will typically only finance only 80% of the equipment cost which also depletes cash reserves
- Underwriting compliance - Financial institutions have strict lending policies and require extensive paperwork (financial statements, tax returns, cash flow analysis and personal financial statements)
- Sales Tax - Must be paid up front vs. monthly
Option 3: LEAVE THE FINANCING UP TO THE CUSTOMER
- Your sale may be lost or postponed.
Option 4: OFFER AN IN-HOUSE LEASE/FINANCE PROGRAM
- 100% financing allows you to include initial maintenance/service contracts, freight, installation and other up front costs
- Simplified one page application
- Conventional lease payments are tax deductible operation expenses
- The equipment is the only collateral pledged, not the customer’s home or other valuable assets.
- Leasing opens up an additional line of credit vs. tying up the customer’s existing lines or depleting your cash
- Off balance sheet lease payments do not jeopardize the customer’s compliance on existing credit lines
You receive payment in full for your products/services upon your customer’s acceptance

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