Ingersoll launches lease option for higher-ed vertical
CARMEL, Ind.—Looking to help integrators and installers jump-start sales in a sluggish economy, Ingersoll Rand has teamed with First American Equipment Finance to create leasing options for security system installations at private K-12 institutions and colleges and universities. Installers and integrators will be able to offer either zero-percent financing of the whole system, or 90-days deferred billing through the program.
“This takes a ‘no’ out of the equation,” said Beverly Vigue, Ingersoll Rand Security Technologies vice president, education markets. “It’s to overcome an objection. If you look at sales 101, you need to have something to overcome an objection about cost ... If the end users have done their due diligence, and the security upgrades really are essential, but they have to wait until the next budget cycle, now you can give them a way to do it.”
The two options created through FAEF are Fair Market Value and Capital. Fair Market allows for zero-percent financing on a 36-month lease, at the end of which the customer can either extend the lease, and maybe get an equipment upgrade, or buy the current system at “fair market value.” The Capital lease does have interest included, but there’s a 90-day deferral of payments, and at the end of the lease the end user can purchase the system for $1.
First American specializes in the higher education market, said Chad Wiedenhofer, VP of the education division, and security “is an asset class that we’ve had experience with in providing financing,” he said. “Especially with colleges and universities, they are a little more budget sensitive. Maybe it’s not in the budget for this fiscal year, and that creates an issue on the sales side when you have to wait for a year to get into the next budget. Providing the solution we’re providing makes it a lot more budget-friendly. It allows them to move forward.”
Vigue said to look for a similar program to possibly be offered by Ingersoll in the health care vertical. In the meantime, she’s cautiously optimistic about the education vertical going forward. “I think it’s going to really pick up in 2011,” she said. “I think it’s going to take a while for new construction to come back.”