Questions about financing? Want to learn how to leverage equipment and technology financing? Confused about the process? Learn all about the Blue Street Capital financing process

Who can Finance?

Financing options are available for businesses, organizations, and associations operating legally for a minimum duration of three years. Financing to individuals for personal use is not available from Blue Street Capital but is available from other partners.

What types of financing do you offer?

The most common types of financing are:
Fair Market Value (FMV)
An FMV lease (rental lease) offers the lowest monthly payment. At the end of the lease term, you may purchase the equipment or return it. FMV leases also offer additional benefits:
● Conserve capital
● Lowest upfront cost
● Reduce total cost of ownership
● Simplify budgeting ● Protect against technology obsolescence
Equipment Finance Agreement (EFA)
You own the equipment at the end of the term. Benefits include:
● In EFAs, the customer retains title to the equipment—Blue Street Capital only maintains a security interest.
● To ensure proper title transfer, the Bill To and Ship To on the final invoice need to be in the customer’s name, not Blue Street Capital's.

How much do I have to pay up front?

This depends on the financing program that meets your needs. Typically, a small deposit is required. The first payment will be invoiced after you receive all of your equipment.

What can be included in a financing agreement?

One advantage of financing is that consulting, training, shipping, installation, software, and initial maintenance—often referred to as "soft costs"—can be financed and included in the financing payments. Unlike loan financing, these costs can be incorporated into the financing agreement.

What are the benefits of financing equipment?

Here are a few ways equipment financing can benefit your company:
● 100% Financing: Covers 100% of the equipment cost with room to add soft costs including training, installation, and maintenance.
● Small Down Payment: A security deposit equal to two months' rental payments is usually all that is required.
● Possible Tax Savings: Depending on the financing program chosen.
● Flexibility: Customize a lease to fit your particular situation. Options include $0 down, 90-day deferred payments, step-up payments, and others to match your budget and cash flow needs.
● Use Inflation to Your Advantage: Pay with future dollars, leveraging inflation over time.
● Increase Profits Immediately: Only need to cover the monthly payment for the new equipment to be profitable from the first month.
● Preserve Bank Credit Lines: Financing doesn’t affect your bank borrowing limits, keeping 100% of your credit available.
● Avoid Obsolescence: Easy upgrade options with most modern equipment always available.
● Conserve Working Capital: Cash isn’t tied up in overhead; it's free for income-producing investments. Acquire the equipment and software needed without tying up capital with 100% financing. Use working capital for other areas such as expansion, improvements, marketing, or R&D.
● Accounting Benefits: Monthly payments may be deductible as operating expenses rather than accounting for the equipment as an asset
● Combine Multiple Vendors: Combine products from multiple vendors into one easy monthly payment.
● Speed and Simplicity: Financing approvals can be obtained in hours, allowing quick responses to new opportunities with minimal documentation and red tape. Inclusion of financial statements is generally not necessary if the transaction amount is below $500,000

How is the monthly payment calculated?

Your monthly payment is determined by a Rate Factor—a periodic payment for the use of assets. For example, a rate factor of 0.031 multiplied by $100,000 equals $3,100 per month.

What does the financing process look like for equipment and technology providers?

1. Business Referral: Equipment vendor refers client and contacts Blue Street Capital, providing the customer name, phone number, and quote.
2. Documentation: Once paperwork is ready, the vendor ships/installs the products and emails the invoice to Blue Street Capital.
3. Funding: Funds are sent upon receipt of the Delivery and Acceptance Certificate and verbal confirmation from the customer.