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Company Overview
KLC Financial, Inc. was established in 1987 as a premier equipment leasing company. Our founder, Marc Keepman, has over 25 years of comprehensive leasing experience. Our executive staff and sales team have collectively more than 100 years of experience in leasing and finance.
KLC is a market leader in providing lease solutions between $3,000 and $3,000,000+ for all types of businesses and all types of equipment and software. We cover all facets of lease financing, and do not specialize in any one industry or particular “credit mold”. KLC has been chosen as a strategic partner by many established equipment dealers, banks and other leasing companies to provide leasing programs on their behalf, because of our vast knowledge, experience and resources. Our customers range from Fortune 500 companies down to lower middle market businesses and “Mom & Pop” ventures. These relationships have translated into $35 million in lease transactions annually.
We have found the market today to be growing, and demanding on leasing companies. Leasing companies today must structure sophisticated lease financing plans in simple terms to get their share of business. At KLC, we have found this to be our strength in a world of consolidation where the giants in the industry tend to have no time for customer service. KLC’s path has been chosen cautiously, as we prefer to build volume profitably, while establishing solid, long term relationships with our customers, investing partners and referral sources.
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The Value of Referral Partners
KLC Financial places great importance on the development of solid relationships with its referral partners. Within each partnership, it is our goal to develop, maintain and nurture a mutually beneficial relationship by providing our financing services to allow you and your sales staff to close sales that may not otherwise be closed. We do this by taking a "can do" approach to our approval process, rather than simply turning away a financing opportunity due to, tough credit, limited (or no) time in business, prior bankruptcy, history of business losses, etc. We spend the time to get to know your client and figure out a way to approve their financing, as opposed to determining a reason to turn them away.
In many cases we are positioned as a "second chance" for your valuable client base providing our services by getting to know your client and their story. There are many instances where a client is placed in a tough situation and just needs a partner to listen to their story. This is our SPECIALTY! We apply our vast knowledge of the finance industry to do the deals that "make sense".
Again, it is our goal to develop, maintain and nurture our relationship with you, our referral partner, to increase your sales by providing creative financing for client base.
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Benefits of Equipment Leasing
Many companies lease equipment because leasing provides the best means of preserving working capital. By leasing, companies can obtain the use of the most equipment with the lowest cash outlay. Frequently, the questions of tax advantages, interest rates, and financial structure arise. A prudent decision maker only considers these issues to determine how they will affect the use of working capital. A savvy finance manager does not fall prey to the lure of owning a depreciable asset. According to J. Paul Getty, you should “lease that which depreciates and buy that which appreciates.”
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Weighing in the Factors
Many decision makers think interest cost is the primary consideration when deciding whether to lease, finance or purchase equipment. There are many simplistic computer programs to calculate the difference between leasing and financing, using the loan interest rate and the effective interest rate as the only considerations. These calculations rarely employ any form of working capital analysis. The use of working capital is far more important to the business owner’s profits than the interest cost. To thoroughly answer this question, one must justify the acquisition by calculating the operating profit the acquisition will generate and then determine the cost of acquisition. Then one must objectively consider two perspectives:
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First
What is the total cost of making the acquisition? The normal rule: the lower the interest cost, the higher the net profits. Many decision makers fall into the trap of believing this is the only rule and look no further. It can be a good rule, as long as the effect on the amount of their working capital is equal.
This brings us back to the first rule of business: Working Capital is the most valuable tangible asset of a business and must always be preserved for its best and highest use. The use of working capital creates profit. Leasing allows for the best use of the most working capital, which translates directly to more profit. Leasing means lower cash outlay and effective reduction of tax liability. Leasing provides ease of maintaining the most effective means of production and also preserves and creates working capital better than any other method of obtaining equipment.
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Second
Business owners should consider the effect on their personal assets and liabilities. Prudent business owners must know this, or they might be forced to close their doors without knowing exactly what effect that would have on them personally. Have they honored all their obligations? Will their personal credit and business reputation suffer? If the company can pay cash for the proposed asset, they have added an asset with no liability. A very safe position, but as the old saying goes, “A ship is safe in port, but ships are not built for that.” A capital asset should be acquired with financing or leasing while keeping sufficient liquid assets available to pay off any obligations created in the acquisition, keeping in mind the worst case liquidation value of the asset.
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Typical Lease Structures
We offer $1.00 out, 10% options and FMV leases for terms ranging from 12 months to 84 months. However, we also have the ability to customize lease structures to fit a Lessee’s circumstances. We know that not all transactions fit in a particular “box”. We build “custom boxes”.
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What Can We Finance?
KLC is a general equipment Lessor with asset types that include, but are not limited to:
- Pre/Post Production Equipment
- Manufacturing Equipment
- Construction Equipment
- Computer Hardware/Software
- Communications Equipment
- Office Furniture, Fixtures and Equipment
- Trucks/Trailers (light - heavy duty)
- Printing Equipment
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We are more than happy to preview any transaction or business financing need. What do YOUR clients need?
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Quick and easy application process