Tool Capital Division
Tool Capital was founded to support our clients in the industrial sector,
and we offer business solutions to help promote growth in the machine
Funding machine tools and related equipment is our goal, and we will
is required to help qualify companies wishing to expand into this profitable
a few easy steps to get your deals done
Application for machine
between a Lease and a Loan
Just a few easy steps to get
your deals done…
• Work the deal with your client. Nobody knows your business better
• 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
• No financial statements required.
• No tax returns required.
• Purchases over $75,000 will required personal and business financial
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.
• 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
• Once the documents are complete you can ship, deliver and install
• 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
• 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
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
• 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
• 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
• 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
• 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
• 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
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
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
• My customers arrange their own financing. Why should I offer
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
• 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
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
• 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
• 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