With financing tight these days, security technology product manufacturer Ingersoll Rand has announced options today that allow for financing of security systems.
According to a statement today from Ingersoll Rand Security Technologies, their dealers can help private K-12 schools and colleges with leasing options for access control solutions. The leasing option is provided through First American Vendor Finance, and according to Ingersoll Rand, the program is designed for schools which can't get the entire project budget up front through a capital expenditure budget.
The dealer or integrator working with the school or college serves as the initial go-between for the school and the lending company, but then the lending company, First American, works directly with the school to provide lease options. The leases can offer 0% financing or 90 days deferred billing.
According to Ingersoll Rand, it's common to see schools use two leasing formats. There is a "fair market value" lease, which allows for lower monthly rates (e.g.. $6945/month for 36 months on a $250,000 system), and at the end of the lease, the school has the option of purchasing the equipment at fair market value. Schools could also at this point decide to return the equipment or even extend the lease. The other option offered is the capital lease, which has higher rates (e.g., $7500/month for 36 months on a $250,000 system), but at the end of the lease, the school can buy the access system for $1. Ingersoll Rand notes that the fair market value leasing option can in some case keep the project off the balance sheet since the system "is not treated as an owned asset."
To find more information, contact Ingersoll Rand Security Technologies through their website.