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Customer Scenario 1 - STATED OPTION LEASES A startup contractor wanted to get his UltraMax crushing plant on the job but didn’t have a large down payment. A stated option lease was established, and the customer made two monthly payments, totaling $20,000, toward the purchase of the equipment. (Under another program, the contractor would have had to pay 15% of the $450,000 cost of the equipment, or $67,500, before the equipment could be delivered to the job site.) The contractor maintained cash flow for the duration of the contract while making his monthly $10,000 payment. In doing so, the contractor earned enough profits to pay off the crusher in a lump sum at the end of the lease.
Customer Scenario 2 - FAIR MARKET VALUE LEASES A contractor purchased an Eagle Crusher plant with a fair market value lease. The contractor established a covenant with the bank to carry the equipment off the balance sheet in order to secure financing and conserve his existing line of credit with the bank. This financing option allowed the contractor to get the equipment on-site and working while still maintaining a line of credit in case of emergency or unexpected expenses during the period of the lease. The profits earned with the crushing plant during the lease period allowed the contractor to pay the appraisal value of the equipment at the end of the lease. The appraisal at the end of the lease will also help the contractor determine the resale value of the equipment if he chooses to resell it.
Customer Scenario 3 - ACCELERATED PAYMENT PROGRAMS A producer bought an Eagle Crusher plant under the accelerated payment program and set up a repayment plan that allowed him to pay 40% of the cost of the equipment in the first year, 30% of the balance in the second year, 20% in the third year, and so on. The producer built equity fast because he paid for 70% of the equipment in the first two years of the financing plan. His interest costs were lower because he owed only 10% of the balance in the last year of the contract. Making smaller payments in the latter stages of the plan also freed up more money for repair and maintenance on the equipment. These expenses typically occur with any equipment after four or five years of hard use.
Customer Scenario 4 - SKIP PAYMENT PROGRAMS A contractor purchased an UltraMax® crushing plant in April and got the equipment up and running immediately. The company made higher monthly payments from April to November but was able to realize profits and cash flow during the period, thanks in large part to Eagle equipment. The contractor made no payments on the equipment in December, January, and February, when winter weather forced him to stop production. When he resumed production in March, he continued this payment process until, after 36 months, the equipment was paid off completely.
Customer Scenario 5 - CONDITIONAL SALE CONTRACTS A contractor who had been crushing concrete and asphalt for several years purchased an UltraMax® crushing plant through a conditional sale contract. He provided a down payment of 15% of the $450,000 equipment cost ($67,500) and had level payments and interest over the next 36 months. At the end of the 36 months, the contractor owned the equipment outright. Throughout the duration of the contract, the company was working with Team Eagle to gain profits and build equity.
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