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Wells Fargo EF Provides Generator Financing Programs for HIPOWER SYSTEMS

October 08, 2015, 07:07 AM
Filed Under: Vendor Finance News

HIPOWER SYSTEMS, a manufacturer of power generation and power distribution equipment in the U.S. and Canada, announced the launch of its new HIPOWERED finance program. U.S. customers now have the option to either lease or finance HIPOWER SYSTEMS’ portable diesel generators and portable natural gas generators from HIPOWER SYSTEMS or any of its authorized distributors and rental customers.

“Generators are a significant but necessary capital investment, and providing a budget-friendly means to break a large capital investment into smaller monthly payments is a real benefit to our customer base,” said HIPOWER SYSTEMS President Rafael Acosta. “We believe strongly in the flexibility that equipment leasing or financing provides. It makes it feasible for our customers to modernize or upgrade their power solutions when the time is right, without a significant financial outlay. It also enables them to better correlate the hard-dollar costs for the equipment with revenue streams and cost savings.”

As with any financing platform, success is dependent upon having a reliable, reputable funding source. To capitalize this program, HIPOWER SYSTEMS worked with Wells Fargo Equipment Finance in Lincolnshire, Ill, which has an experienced team that is distributor and end-user focused. The result is a full set of programs that HIPOWER SYSTEMS is confident will meet or exceed market expectations. Special features of the financing program include:

  • Standard terms of 12-, 24-, 36- and 60-months provide payment and term flexibility. Longer terms may be possible based upon utilization requirements.
  • 100% financing with fixed, low monthly payments allows the equipment to be profitable from day one based upon the revenue produced and expenses saved. -Companies may also be able to take advantage of first-year deductions for up to 100% of the equipment cost, up to a specified limit, as described in Section 179 of the U.S. tax code.
  • Once credit is approved, interest rates will be locked in for 90 days, providing a valuable hedge against rate increases and allowing time for desired generator customizations to be completed.
  • Customers that wish to upgrade their fleets through early contract payoff may do so with unearned interest being rebated, a feature that is rare in many finance contracts.

The leasing program will be equally attractive, offering affordable monthly payments and giving many companies the benefit of expensing equipment purchases on a yearly basis, conserving capital and buying power*. Special features of the leasing program include:

  • 100% financing with low, fixed monthly payments to finance the entire cost of the acquisition, including equipment, software and soft costs. In may also be possible to bundle incidental costs, such as sales taxes and installation charges into the lease rather than paying them upfront.
  •  Once credit is approved, interest rates will be locked in for 90 days, eliminating concerns about potential interest rate increases.
  •  Operating leases help firms that have exhausted their annual Cap-Ex budget for the year but have urgent equipment needs.

Both programs will offer simple applications that take only minutes to complete with rapid approvals (usually within 24 hours). The financing entity will prepare all paperwork, typically on a single-sided document, with no UCC forms to file.

"Wells Fargo Equipment Financing and its programs are recognized in the financial industry for their ability to help companies such as ours offer competitive financing programs that make large equipment purchases accessible to customers," said Acosta. “As a manufacturer, we want not only to supply power solutions but also to provide our customers with cash management options that will enhance their fiscal stability. That was a foremost premise for HIPOWER SYSTEMS moving into financial merchandising products and this offering will achieve our goal."

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