Welcome to Banclease
Want to increase your capital? Leasing may be the answer your financial institution has been searching for. The Banclease consulting and outsourcing program has helped banks across the U.S. establish their own successful lease programs. Our bank lease training class and consulting services include teaching your bank how to set up a lease program that will serve your bank’s particular needs, target your lease market and add to the bottom line.
Your own leasing program will offer:
- Increased fee income
- The addition of a higher return to your credit portfolio
- Development of new customer relationships
- Cross-selling of products to new customers
- Possible tax advantages
Your own lease portfolio can easily top your loan portfolio. Of the commercial, agricultural and municipal purchases made every year, 34 percent are financed through a lease agreement. Chances are, your customers are leasing some equipment right now. In the future, they can lease from you!
The most important feature of a lease program from Banclease is this: Your lease program is YOURS. You manage the program like you want to. You fund it, you make the credit decisions and you reap the rewards. Our comprehensive turn-key program works and you will receive specialized sales training, software training and more from Banclease.
Are You Looking to Increase Profits, Add New Business and Improve
Then you need to consider Banclease.
- Your leases will likely be the highest yielding product you have in your credit portfolio.
- Leases have great non-interest income potential. We receive an origination fee on the beginning and residual income on the end. We also sell a life insurance product on which we receive commission.
- Leases will help fill the revenue void left by the downturn in residential real estate.
- It gives a great competitive advantage. In our community, we have leases with our competing bank’s owners simply because their bank doesn’t offer the lease product.
- There may be tax advantages to the bank or holding company. Consult with your accountant.
- You manage the leases locally. We provide the software, you provide funding, make the credit decisions, and enjoy the additional revenue.
- Your market will broaden as you develop a network of equipment and other high-ticket item dealers. They’ll be selling your product for you, but you’ll be underwriting the credit.
- There are great advantages for your customer. Chances are, if your customer is in agriculture he’s leasing some equipment now. In the future, he can lease from you, and you can expand your customer base with others in agriculture.
- Leasing is a great cross-selling opportunity. We put our Visa® card in the hands of every lease customer we have. That’s not even considering the new deposit relationships we’ve established as a result of this program. We also offer a long-term, fixed rate farm loan product. The leasing program provides a natural market for this product.
- There’s no risk on your part. Not sure if you want to invest in Banclease? No problem. We will provide you with all the paperwork and documentation you need to execute a lease for a small fee. After your first lease, we charge a $500 annual fee to affiliate with Banclease. There also is a fee of .50 of Yield for leases of up to $25,000, .25 of Yield for leases of more than $25,000 up to $250,000, and just .15 of Yield for leases of $250,000 or more.
- For Banclease affiliates, the small fee includes quoting and pricing leases, document preparation completed in your institution’s name, marketing materials, and free telephone support.
Contact Banclease today about our bank leasing program. We can provide you with additional information and answer any questions you might have. This proven product offers many benefits to you and your customers. Contact us online or by phone (toll-free) at 1-800-530-5327.
Types of Leasing
Focus Bank has a great number of agriculture related lease customers because of the primarily rural environment of its location. Other customers have included municipalities and commercial businesses.
The types of bank lease programs your facility can offer vary depending on your customers’ needs and your specific program. Banclease will provide your bank with the tools necessary to write all types of equipment leases.
Leasing could be the most cost-efficient source of financing available today, offering significant benefits to you and your customers. And with Banclease, you also have the satisfaction of knowing you are dealing with another community banker that has made this program work. The Banclease program has been proven to work and our staff looks forward to introducing you to this great opportunity. Contact us online or call, toll free, 1-800-530-5327.
Banclease on-site training consists of a day and a half of detailed instruction.
Day one of training begins with a look at the Banclease software. Attendees are walked through each module of the program. Standard leases, flexible payment leases, and skip leases are all displayed. Real-life examples are used to demonstrate how to structure, price, and quote leases.
Next is documentation. During this phase the process of creating the documentation through the software is explained. Along with the functional aspect of creating the documents, this is the time during training when each document is explained in detail. Attendees are taken through a mock closing during which common customer questions are addressed.
The first day of training ends with a discussion of yields, fee calculations, purchase options, and lease servicing. A focus is placed on the importance of pricing and managing the purchase option portion of each lease.
The second day of training involves reviewing FASB-13, Revenue Ruling 55-540, anode Procedure 75-21. The discussion of regulations is followed by a session on general ledger accounting for leases. Following this section, a lease case study is presented that allows the group to complete a lease from start to finish.
The training is concluded with a session on marketing: a close look at dealer relationships, media outlets, factor sheets, and dealer visits. Included in this section is a marketing package with fliers, direct mail letters, and lobby displays that are ready to be customized by each bank.