Figuratively is our excellent service. But how we literally go “over and above” is by financing soft costs and extras. Indeed, a full 25% of your entire loan amount can be soft costs and extras. 

When you finance equipment anywhere else, there’s a good chance you’ll have to reach into your own pocket for these soft costs and extras. 

And what are these soft costs and extras that Crest will finance but others won’t? I’m happy the question came up – here’s a partial list:

• Taxes – Uncle Sam wants his cut. Fortunately, Crest Capital can finance this part for you as well. 
• Delivery – As the items you finance get larger, the chances of a delivery cost typically rise. We can handle that too (tipping the driver is on you though.)
• Installation – Does your newly-financed equipment need to be professionally installed? Sometimes this carries a charge, which you can finance if you use us. 
• Training – Some equipment has optional training you can purchase. We can include this as part of your deal.
• Upgrades and Add–Ons – Does your equipment dealer offer the super cool deluxe package, but the bank only wants to finance the boring base model? Come to Crest Capital – we’ll get you the equipment you really want. 
• Maintenance and Service Agreements – As equipment gets more technologically sophisticated and complicated, the need for routine maintenance and extended warranty service agreements rises. We can include these in your deal as well.

So yes, soft-cost financing is definitely something that most borrowers are interested in. And again, with Crest Capital, a full 25% of your deal can be soft costs that you’d normally pay out of pocket for. This allows you to leave your wallet at home (well, like I stated, just bring enough for a tip – we don’t finance that!)  

Let’s start with software financing / software leasing. Why would a company finance software instead of waiting until it was financially practical to outright buy it? The reasons are several:

• It allows a company to stay technologically competitive– In many industries, having cutting edge software makes you more efficient, and, depending on the software, allows you to expand your products and/or services (think of CAD software for a product manufacturer, or better logistical software for a transportation company). In any case, to stay competitive, many companies need new software, and it can’t wait until next year. And some equipment financing companies (like mine) offer “software only financing”, which is attractive.

• It allows for more purchasing power and extras, like training and support– Software financing is sometimes “added in” with hardware purchases. In other words, a company will come to an equipment financing company meaning to finance hardware, but they find they can also finance new software in the same “deal” (even if the software is from another company). Plus, training and support agreements can be financed as well, allowing a company to take full advantage of their new software.

• It protects against obsolescence– Many times, upgrades and such can be added to an existing software financing agreement, protecting a company against “maybe we should wait, because the new stuff is coming out next year”. Instead, that becomes “let’s get it now to stay ahead of the competition, and plan on upgrading next year”.

Times have definitely changed. Good equipment financing companies recognize that software is a very important part of many companies, as important as a sign, machines, and office furniture. Thus, they make financing software as easy as financing any of those other items. This is welcome news to customer’s ears.

I’ll be the first to admit that her want for the Kindle was more selfish than “let’s help the economy out”, but I digress. The point that I want to make is this gadget is a profound statement that the world, and business, are changing. I recall a scene in “Other People’s Money”, when Danny DeVito’s  character said “I’ll bet the last buggy whip manufacturer made the best buggy whip you ever saw… how would you like to be a stockholder in that company today?” (I’m paraphrasing.) A great scene, and a fairly good sentiment as well.

So what does this have to do with equipment financing?

Simple – the world is changing, and equipment financing can help you change with it. Because most equipment financing companies will finance software.

I realize I’ve mentioned this before in the blog (sometime last year), but it’s something I want to repeat every so often because financing software is not something most companies think about. The reason they don’t think about it is simple – banks generally won’t write a software lease. Software is generally not something you can see, feel, or smell, so many old-school lenders have trouble seeing the “equipment” there. But tell me – is the software that makes Kindle possible really any different than a printing press in terms of getting a book to a reader?  I’m telling you it’s not – thus, the more forward thinking equipment financers have embraced financing software.

Now, I’m not telling you every company needs to finance software or go the way of the buggy whip. Not true at all. But maybe, just maybe, someone reading this says “gee, I didn’t know that… you know, we were thinking of developing something that…” and the light bulb goes on. And then maybe then old Fletch does HIS part in helping the economy too.

But yes, software financing is something that’s not only possible, but could be a real boon to many companies with more ideas than liquid capital at the moment.