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NBF Capital


Machine Tool Capital Division

Machine Tool Capital was founded to support our clients in the industrial sector,
and we offer business solutions to help promote growth in the machine tool arena.
Funding machine tools and related equipment is our goal, and we will do whatever
is required to help qualify companies wishing to expand into this profitable area.

Just a few easy steps to get your deals done

Credit Application for machine Tool Capital

Differences between a Lease and a Loan

Frequently Asked Questions


Just a few easy steps to get your deals done…

Customer Purchase
• Work the deal with your client. Nobody knows your business better than you.

• Now that you have the sale, have your customer complete our Fast & Simple one page credit application.
• Small ticket leases for up to $75,000 are offered as an application only process.
• No financial statements required.
• No tax returns required.
• Purchases over $75,000 will required personal and business financial information.

Fax the Application
• Send the application to our fax number 801-453-8031.
• Make certain that the application is filled out completely.
• Signatures are required in order to proceed.

Sit Back and RELAX
• Credit approvals are usually made within 24 to 48 hours.

Approval Process
• NBF will process the application and provide verbal and/or written lease approval to you and/or your client.
• Approvals are made.
• Rates are offered.

Complete the Deal
• You will finalize the clients deal and forward to NBF.
• NBF will work with the client to complete the documents to finalize your deal.
• Once the documents are complete you can ship, deliver and install the equipment.

Move On
• Once the product has been delivered, installed and is accepted by your customer, we will provide you with the final payment.
• All of the above is done with very little participation from you.
• NBF Capital, LLC as your partner will make the finance fast and easy so you can continue to sell and grow to meet all your sales goals.

The Difference Between A Loan & A Lease

• Loan: A loan requires the end user to invest a down payment in the equipment. The loan finances the remaining amount.
• Lease: A lease requires no down payment and finances only the value of the equipment expected to be depleted during the lease term. The lessee usually has an option to buy the equipment for its remaining value at lease end.
• Loan: A loan often requires the borrower to pledge other assets for collateral.
• Lease: The leased equipment itself is usually all that is needed to secure a lease transaction.
• Loan: A loan agreement usually includes restrictive covenants that require the customer to maintain certain financial ratios that may restrict the customer's ability to borrow future funds. In the event the customer violates one or more of the covenants, the lender has the right to demand payment in full of the outstanding loan amount even though the loan payments have been made on time.
• Lease: A lease does not normally contain restrictive covenants that limit the lessee's ability to borrow future funds. As long as the lessee continues to make their lease payments, the lessor can not disrupt the lessee's use of the equipment or demand the immediate payment of the outstanding lease payments.
• Loan: A loan usually requires two expenditures during the first payment period; a down payment at the beginning and a loan payment at the end.
• Lease: A lease normally requires only a lease payment at the beginning of the first payment period which is usually much lower than the down payment.
• Loan: The end user bears all the risk of equipment devaluation because of new technology.
• Lease: With an FMV lease, the end user transfers all risk of obsolescence to the lessor as there is no obligations to own equipment at the end of the lease.
• Loan: End users may claim a tax deduction for a portion of the loan payment as interest and for depreciation which is tied to IRS depreciation schedules.
• Lease: When leases are structured as true leases, the end user may claim the entire lease payment as a tax deduction. The equipment write-off is tied to the lease term, which can be shorter than IRS depreciation schedules, resulting in larger tax deductions each year. The deduction is also the same every year, which simplifies budgeting (Equipment financed with a conditional sale lease is treated the same as owned equipment.)
• Loan: Financial Accounting Standards require owned equipment to appear as an asset with a corresponding liability on the balance sheet.
• Lease: Leased assets can be expensed when the lease is an operating lease. Such assets do not appear on the balance sheet, which can improve financial ratios.
• Loan: A larger portion of the financial obligation is paid in today's more expensive dollars.
• Lease: More of the cash flow, especially the option to purchase the equipment, occurs later in the lease term when inflation makes dollars cheaper.

Frequently Asked Questions:

• Why is NBF Capital better than the competition?
Leasing is more than just a numbers game; leasing is service that you can count on every day. We have a salesperson dedicated to each vendor. Our sales people not only have an expertise in equipment leasing, they have an understanding of your industry. More importantly, they develop an understanding of your company and your specific objectives. Our vendor programs are designed specifically to meet the customer’s needs; and every customer’s needs are unique. Once a program is designed, we provide initial training for you and your sales force as well as follow up training and support throughout the entire program. We are not a broker and we service all our commercial accounts from start to finish. You and your customers will deal only with NBF Capital throughout the entire relationship. We value your business too much to hand it over to someone else.
• How can I lease equipment from NBF Capital?
For transactions under $75,000 the lessee completes a one page lease application and faxes it to NBF Capital. Our customers also have the option of completing and electronically submitting a secure on line lease application for immediate processing. For transactions over $75,000, we require an application and the last two years of financial statements or the last two years of complete income tax returns. All applications are immediately processed free of charge. Once approved (usually within 48hours), we will generate a one page lease approval form and send it to the lessee and/or vendor. Approved applications and lease rates are valid for 90 days. To complete the transaction, the lessee authorizes a simple one page lease agreement written in plain English with terms that everyone can understand. When we receive and approve the executed lease contract and vendor invoice, NBF Leasing pays the vendor immediately--not days or even weeks later. It’s that simple!
• What equipment does NBF Capital finance?
NBF leases all types of equipment.
• What are NBF Capital's credit requirements?
Generally, NBF Capital prefers to lease equipment to lessees that have been in business at least 24 months.
• Does NBF Capital work with equipment vendors?
Absolutely! Teaching equipment manufacturers, distributors, and resellers to use leasing to help sell their products is one of the most efficient means for NBF to distribute its financial products. Most lessees choose the leasing company that is recommended by the equipment vendor, and this keeps you in control of the sale.
• Why should an equipment vendor develop a relationship with NBF Capital?
Every sale proposal should be presented with a lease-financing alternative. 93% of the customers that "want to lease" and receive a sale only proposal, assume that the vendor does not have the ability to lease their equipment. To avoid the hassle of searching for additional funding, the customer will simply do business with the equipment vendor that can provide immediate financing for their products. NBF’s role is to provide the required funding to your customers to insure they do business with you and not your competition.
• What kind of service does NBF Capital provide?
Our customers say our service is outstanding! NBF Capital has invested heavily in technology to assist our people in providing the highest quality of service. In addition, NBF Capital is continually evaluating changes in technology to insure that our service remains outstanding. If you are an equipment vendor looking to increase sales, or an end-user looking to conserve working capital, NBF Capital can help. We provide the competitive price and personal service that will meet your objectives and maintain a lasting relationship--not just a one shot deal.
• How do I use leasing to close more sales?
The first thing you need to do is to eliminate offering your customers a total cost proposal and concentrate on selling your products based on a monthly payment that is within your customer's monthly budget. Then your customers are assured of receiving all the equipment they need. In addition, by presenting a much more affordable monthly lease payment, you can convert those customers who are reluctant to make a buying decision due to the objection of having to make a large upfront cash outlay. Your customers will often find that leasing produces a greater monthly operating profit. As a result, they will return to lease more equipment.
• My customers arrange their own financing. Why should I offer leasing?
By allowing your customer to arrange their own financing, you lose control of the sale. Your competition may try to unhook your deal, your customer may get cold feet or their financing alternative may become too cumbersome to complete. By offering the services of your own leasing company, you will control the sale. The approval process for leasing is generally faster and easier than other types of financing, thus preventing your customer from changing their mind. If your competition becomes a factor in the transaction, your lease representative will often know and inform you immediately.
• My customers all pay cash. Why should I offer a lease program?
While some of your customers are paying cash, many other potential customers are leasing their equipment or financing it with working capital loans. In addition, many of your customers that paid cash for their equipment, may have been able to afford better or more equipment if they had been given a lease option. If your cash customers leased their equipment instead of paying cash, they may have been able to use the cash to expand their businesses, thus requiring more of your equipment.
• My customers think leasing is too expensive. How do I handle this objection?
Leasing is a competitive source of funds. It is easier, faster and more convenient than borrowing. It allows a business to grow by freeing up working capital for general expenses, inventory and any unforeseen emergencies. Eight out of ten companies use leasing to finance their equipment acquisitions. It is not expensive.
• Does it cost me anything to offer a leasing program to my customers?
No. In fact, leasing will help you maintain profit margins. You will increase sales by offering your clients additional options, and making it more affordable for them to acquire your equipment. It costs you nothing to mention leasing to your customer. Also, more sophisticated vendors actually make money from their leasing programs through residual value participation, gross profit tax deferral, and other structures.
• What kind of equipment can be leased?
Virtually any equipment utilized by a business can be leased, new or used, including soft costs such as freight, installation and training.
• How long does it take to get paid?
Once the equipment is delivered and accepted, it normally takes 24 hours or less for you to receive the check for your invoice.
• Is my company liable if a Lessee stops paying?
No. Unless you have a special program in which you request recourse or a remarketing agreement. The credit worthiness of a lessee is not your risk.
• How long will it take to get an approval?
Processing of your customers credit application will begin immediately upon submittal. The credit application may be completed on-line or you may have your customer download and fax it to us. Once we have received all the necessary information, the credit decision will be provided to you and your customer within 24 hours in most cases.
• What if my customers decide they want to finance additional equipment or upgrade the equipment?
As your customer's business grows and their needs change, you can add or upgrade them at any point during the lease term. If the nature of your customers industry demands that they have the latest technology, leasing can help prevent their equipment from becoming obsolete.
• What kinds of lease terms are available?
A variety of leasing products are available that allow us to tailor a lease to fit your customer's month-to-month cash flow requirements. Lease terms usually range from 12 to 60 months with various end of term options.
• Why should my customer lease?
Leasing provides many advantages, and a great deal of flexibility in how your customers manage their equipment acquisitions and deploy their capital. The number one reason for leasing is preservation of working capital and liquidity. Whether your customers are a small or large company, leasing allows them to structure their equipment acquisition to best suit their time frame and payment structure.
• What about sales/use tax?
Your customer is responsible for any and all sales/use taxes, but often those payments are made along with the lease payment as opposed to up front with a purchase. This allows the equipment to pay for itself.
• Who can finance or lease?
Any company, organization or association can lease.
• Are my customers qualified to lease equipment?
The general guidelines for business leasing are 24 months in business, profitable, or a personal or corporate guarantor may be required.
• How do customers apply for a lease?
Complete a quick, easy and secure on-line application.
Print an on-line application, fill it out and fax it to 800-798-7885.
• How is the monthly payment calculated?
Monthly payment is determined by a Lease Rate Factor; a periodic rental payment to a lessor for the use of assets. Lease rate factor x equipment cost = your monthly payment.
• What factors are used to determine credit worthiness?
Generally, our credit criteria requires us to review your customer's time in business, references (from bank and trades), credit rating (from D&B or other credit bureaus), and past years financial statements and tax returns for larger transactions.
• How much do my customers have to pay up front?
A typical lease would require from zero to two monthly payments due at the lease commencement, after the equipment has been delivered and accepted.




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