Frequently Asked Questions

The most common types of financing are:

Fair Market Value (FMV)

FMV lease (rental lease) offers the lowest monthly payment and at the end of the lease term, you may purchase the equipment or return the equipment. FMV leases also offer additional benefits:

• Conserve capital

• Lowest upfront cost

• Reduce total cost of ownership

• Simplify budgeting

• Protect against tech obsolescence

Equipment Finance Agreement

Similar in structure to a $1 Buyout option lease, you own the equipment at the end of the term. You’ll also get the following benefits:

• In Equipment Finance Agreements (EFA) the customer will keep title to the equipment – Blue Street only maintains a security interest

• In order for title to properly pass to the customer, the Bill To and Ship To on the final invoice need to be in the customer’s name NOT Blue Streets

$1 Buyout

In a $1 Buyout option lease, you own the equipment at the end of the term. You’ll also get the following benefits:

• Conserve cash flow

• Lower upfront cost

• Purchase equipment for a fixed price

• May have tax and accounting benefits — please consult your tax professional

This depends on the financing program that meets your needs. Typically, you will be required to make a small deposit. We will invoice the first payment after you receive all of your equipment.

One of the advantages of financing is that consulting, training, shipping, installation, software and initial maintenance CAN be financed and included in the financing payments. Unlike loan financing, these costs, also known as “soft costs” can be included in the financing agreement.

Here are a few ways equipment financing can benefit your company:

• 100% Financing. 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 you choose

• Flexibility. Customize a lease to fit your particular situation. We offer $0 down, 90 day deferred payments, step-up payments, and many others to match your budget and cash flow needs.

• Use inflation to your advantage. If you pay cash for your equipment, you pay with today’s dollars at today’s value. Through financing, you pay with next year’s inflated dollars, and the next, and the next.

• Increase profits immediately. With financing, you 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. You still have 100% of your credit available.

• Avoid obsolescence. Upgrade finances are easy with most modern equipment always available.

• Conserve working capital. Cash isn’t tied up in overhead, it’s free for income producing investments. You can acquire the equipment and software you need without tying up capital with 100% financing. Use your working capital for other areas of your business such as expansion, improvements, marketing or R&D.

• Financing agreements may have 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 and can allow you to respond quickly to new opportunities with minimal documentation and red tape.  With financing, the inclusion of your financial statements is generally not necessary if your transaction amount is below $500,000.

Your monthly payment is determined by a Rate Factor — a periodic payment for the use of assets. For example, a rate factor of .031 x $100,000= $3,100 per month.

1. Equipment vendor generates a lead and calls us: Simply provide the customer name, phone number and your quote, we will take care of the rest!
2. When the paperwork is ready, you ship/install your products and email the invoice to us.
3. We will send funds upon receipt of the Delivery and Acceptance of Certificate, and verbal confirmation of customer

• Application is submitted
• We may request other financial information if needed
• After approval, documents are prepared for signature
• After signed documents are received, a purchase order is issued
• We can pay any deposits or progress payments to approved vendors
• Equipment is delivered
• Upon receipt of an invoice, payment is made after verification of delivery.

• In the event the equipment of technology provider requires a deposit, customers have the option to pay the deposit directly to the equipment provider and finance the remaining balance or finance the entire cost of the equipment including the deposit.
• Customers will be able to receive a refund of any deposit they make. This means that we pay the vendor in full, the equipment provider will return the deposit or we will reimburse the customer directly.
• In approved projects, we can provide 50% of the project cost up front

Insurance is required for the duration of the finance agreement. An Insurance Authorization page will be included with the initial document package.  We can reach out to request the certificates of property and liability on your behalf.

A UCC-1 financing statement (an abbreviation for Uniform Commercial Code-1) is a legal form that a creditor files to give notice that it has or may have an interest in the personal property of a debtor (a person who owes a debt to the creditor as typically specified in the agreement creating the debt).

A UCC will be filed before collateral is delivered.  The UCC must be filed within 20 days of receipt of any part of the equipment/

If a security interest is not perfected due to timing issues, or if the transaction is structured as a sale-leaseback, subordination letters will need to be obtained from all secured parties that have a blanket lien over the company.