Bank Lease Program
Kinetic Leasing partners with banks to provide their customers with equipment leasing options.
No signed contract for banks | No cost to banks | Banks earn fee income
Banks can offer additional product to generate assets
The vast majority of small businesses that lease equipment obtain financing from sources other than banks.
How much loan business is your bank losing to these companies?
Kinetic Leasing has designed its bank lease program to meet your bank’s leasing needs.
Kinetic Leasing’s bank lease program uses your bank lending personnel as a referral source for equipment leasing transactions.
Our program is structured to allow your bank to offer standard, full-service equipment leasing products to your clients, without needing the resources to maintain a leasing division/subsidiary and without taking on the responsibilities and risks of a lessor.
This model has proven very successful. Kinetic Leasing has financial partnerships with 250+ banks in 175+ cities and 14 states, and our footprint is always expanding.
Kinetic Leasing does the work and assumes the risks. Easy.
This is how your partnership with us works. Kinetic Leasing will:
- Train your personnel to recognize leasing opportunities, document the leases, and service the leases throughout the term.
- Provide marketing support, such as direct mail, newspaper, and point-of-purchase marketing materials for you and your bank customers.
- Provide a link to your bank’s internet site for your bank customers to obtain instant lease quotes and an on-line lease application from Kinetic Leasing’s website.
- Answer any questions you or your bank customers have related to leasing.
- Assist you in underwriting (structure, documentation, pricing, etc.) the lease transaction.
- Provide fast turnaround of approval and documentation on each lease transaction.
- Provide timely billing and collection of all lease payments and related sales/property taxes.
- Provide reports on your lease portfolio, including balances, average rates, aging of rents, etc.
- At end of lease, re-market the leased equipment through guaranties from the vendor/manufacturer and remarketing agreements, to eliminate and/or reduce residual risk exposure.
Kinetic Leasing’s process is simple and fast. We’ve been working with local and regional banks since 2000.
A typical transaction with Kinetic Leasing goes as follows:
- The bank or its customer contacts Kinetic Leasing for a lease proposal. This can be accomplished via a formal lease application from Kinetic Leasing’s website or a simple telephone call. The bank gathers the following information:
- General description of equipment
- Equipment cost
- Term of lease (may be multiple scenarios)
- Bank’s buy rate
- Kinetic Leasing works with the bank to complete the lease proposal(s). Revisions to the initial lease proposal(s) may be warranted, pending completion of the credit underwriting process or revised lease terms requested by lessee.
- The bank completes its credit underwriting/approval process, per established process.
- The bank forwards the following information to Kinetic Leasing:
- Signed lease application
- List of equipment to be leased (copies of invoices and/or purchase orders)
- Letter indicating bank’s credit approval of the lease transaction.
- Kinetic Leasing completes lease documents and forwards to bank or to the lease customer for execution (per banker’s instructions).
- The bank has lease documents signed and sends back to Kinetic Leasing.
- Kinetic Leasing remits equipment purchase amount to vendor(s).
- Kinetic Leasing funds/discounts the lease transaction with the bank.
- Kinetic Leasing invoices lease payments and applicable sales tax.
- Collections of past due lease payments are administered jointly by the bank and Kinetic Leasing.
- End-of-lease terms, including lease payoffs, are handled by Kinetic Leasing.
Together with Kinetic Leasing, we form a partnership that recruits and retains the very best customers.
The benefits to you of using the Kinetic Leasing’s Bank Lease Program include:
- Providing your bank customers with equipment leasing options without the expense of additional staff and dedicated office space.
- Having (as the bank through which the lease was sourced) the first right of refusal to fund the lease.
- Earning fee income at the beginning of the lease.
- Adding to the diversification and growth of the bank’s assets.
Partner with the leasing experts at Kinetic Leasing today. We will provide your bank with the expertise and infrastructure you need to offer leasing to your bank customers, with almost no investment on your part.
If you have questions that aren’t answered below, please contact us.
Q: How do I know if my customers are leasing equipment?
A: There are several ways to do this:
- You may simply perform a UCC-1 lien search to identify any equipment lease financing done by your customer.
- You can also identify equipment leasing on tax returns:
- For commercial customers who provide a Schedule C with their tax return, look for amount(s) under line 20, which lists rent or lease expense for the year.
- Similarly for your ag customers, refer to Schedule F, line 24. If any amount(s) are listed, then they, too, are leasing items.
- For your business/commercial customers that provide you with “reviewed” or “audited” quality financial statements, there are a couple of ways to determine if they have equipment leases in place:
- For a Capital Lease, you will see a line item under the customer’s liability section(s), similar to that of a traditional commercial loan.
- For an Operating Lease, you will find a footnote in the financial statements. It will state the amount of operating lease expense the company incurred in the past year, followed by a schedule of lease payments to be made in the subsequent 5 years.