Test Equipment Firm Experiences Doubling of Lease Volume with FirstCorp

Company
One of the nation’s largest providers of electronic test equipment solutions.
Challenge
Specialized in the sale and financing of new and reconditioned electronic test equipment, the company retains a multi-million dollar inventory where, according to the time-sensitive demands of its nationwide customers, equipment can be shipped at a moments notice.
But before the product can be shipped, it must be purchased or financed, and for the increasing number of customers looking for an equipment lease, they found that the process could take significantly longer.

“With test equipment, often timing is critical. Customers need test solutions now. For some customers, when it takes additional time to finalize a lease, that need is not met” said Kevin Collins, Vice President of Vendor Sales for FirstCorp.
Solution
Enter FirstCorp. Working closely with the company, FirstCorp developed a leasing solution that would meet the needs of both the company and its customers. The solution was developed around four key areas: Control, Speed, Flexibility, and Training.
Control
In previous solutions, the firm would need to have a customer complete a lease application by hand to fax it away to a third party. Further faxes would need to occur, each with the customer present for signing. FirstCorp tailored its powerful online services to give the company the ability to input lease applications directly, eliminating the need for faxing and waiting. Once a company representative has submitted a lease online, they are alerted of any changes and approvals through the online system.
Speed
In addition to saving time with the lease application process, FirstCorp is able to approve lease applications in a few hours, allowing the company to finalize leases with customers the same day they call.
Flexibility
The firm required a solution that would allow lease terms that fit the diverse needs of its customers. Using FirstCorp, the company can now offer leases beginning at only 24 months, with terms such as fair market value, bargain purchase option, percentage purchase option and more. These options are easily selectable in FirstCorp’s online system and allow the company to offer a customized lease that fits the needs of the customer.
Training
FirstCorp deployed specialists on-site, training company representatives and management on using the online system and submitting trial applications. At the completion of training, company representatives could manage the entire lease application process.
Results
With the ability to offer customers fast and convenient, custom-fit lease options, the company immediately noticed substantial lease growth.
“The customers responded to the new lease offerings right away. During the first 60 days of the program, their lease volume increased 200%,” said Collins.
FirstCorp’s leasing solutions have also helped to impact sales. With test equipment requiring a large outlay of capital, for many customers, purchasing equipment is either not affordable or desirable, and rental options are sometimes not available, or come with a high monthly cost.
“In this situation, FirstCorp’s short term, quickly approved leases are a great fit, as they allow the customer to benefit from a lower monthly payment while still having the flexibility to choose how they will best be served by the equipment in the future,” said Collins.
The lower monthly payment of a lease along with an expedient approval process has assisted the company in converting contacts to customers.

“If a rental payment is not affordable, or a lease takes too long to process, they can lose a customer. So, the new system is a big help," said Collins.
Offering FirstCorp leases has also contributed to profits. Collins commented, “The rental situation can be a risky one. A customer can return equipment at any time and they have to find a new home for it. If the equipment is waiting in the warehouse, it is not contributing to thier bottom line.”
With a lease, the company knows when its equipment will return and can schedule a new buyer in advance.

“FirstCorp helps them balance their lease/rental portfolio,” said Collins.
In addition, the firm has been able to realize savings on credit analysis. Previously, company staff would process certain credit applications, costing time and money. “When a lease is processed through FirstCorp, FirstCorp handles all of the credit analysis and bears that cost itself,” said Collins.
About FirstCorp Vendor Services
FirstCorp provides innovative solutions that address the ever-changing equipment financing and asset management needs of growing companies, and takes pride in providing flexible and creative solutions in structuring lease transactions. FirstCorp provides companies with leasing structures that preserve working capital, achieve potential tax benefits, and provide fixed payments that result in better capital management. For more information, visit: www.firstcorp.com/vendors/index.htm.
 





For additional information, contact:

Brian Cascarano
Vice President of Marketing
(847) 663-6700

bcascarano@
firstcorp.com